China's Yashili agrees to buy Danone's Dumex infant formula unit

Yashili International Holdings

24/07/2015 02:32

HONG KONG, July 24 (Reuters) - Chinese milk formula maker 
Yashili International Holdings Ltd  1230.HK  said on Friday it 
has agreed to buy an infant milk formula unit from Danone SA 
 DANO.PA  and will work with the  French dairy giant on a New 
Zealand manufacturing plant.  
    Yashili, 25 percent-owned by Danone and one of China's top 
10 infant formula makers by sales, said in a filing to the Hong 
Kong bourse it plans to acquire Dumex Baby Food Co, a wholly 
owned Danone Asia unit. Financial terms weren't disclosed, but 
Danone will use proceeds to buy shares in milk producer China 
Mengniu Dairy  2319.HK , which owns an indirect 51.04 percent 
stake in Yashili. 
    The deal comes as competition grows in the world's largest 
infant formula market, with both Chinese and foreign firms 
seeking to shore up market share and locate new expansion 
channels. China is Danone's fourth-largest market, accounting 
for around 7 percent of its group sales in 2014. 
     
 
 (Reporting by Donny Kwok; Editing by Kenneth Maxwell) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: YASHILI DANONE/