China Mengniu Dairy Company Limited (2319.HK)

Danone reorganises Chinese assets, cuts ties with Mengniu

PARIS (Reuters) -France's Danone said on Friday it would end its partnership with Chinese milk firm Mengniu by selling a 25% stake it holds in milk powder maker Yashili as well as a 20% joint venture participation. In return, Danone will acquire from Yashili 100% of the Dumex Baby Food infant milk unit. The different parts of the deal, which also includes a sale of a 20% stake in the Inner Mongolia Diary Joint Venture, will not need to close at the same time.