Danone agrees €325m joint venture with China’s biggest dairy producer

Danone, owner of Activia yoghurt and Evian water, will spend about €325m to form a joint venture and invest in China’s biggest dairy producer to expand its brands in the most populous nation.

Danone will have an initial indirect interest of about 4% in China Mengniu Dairy Co, with the aim of increasing that in the future, the Paris-based company said in a statement.

It will also set up a venture with Mengniu for yoghurt products in China. Mengniu shares surged the most in four years.