Danone ups stake in China’s top dairy firm with €486m investment

Danone is spending €486m to lift its stake in China’s top dairy firm, aiming to tap into booming local demand and secure greater control over supply quality in a region often hit by food safety scares.

The investment in China Mengniu Dairy by the world’s biggest yoghurt maker, whose brands include Actimel and Activia, will boost its holding to 9.9% from 4%, making it the Chinese company’s second-biggest shareholder after China’s Cofco Dairy Investment.

“This will allows us to pursue our ambition to expand in the fresh dairy category in China and benefit from its great potential,” a Danone spokeswoman said yesterday.