January 30, 2008

Danone buys two dairy plants in China

Danone, recently involved in a bitter feud with a Chinese partner, has announced it bought two Chinese dairy plants as it seeks to reshuffle its China operations.

Danone said it would buy one in Beijing and the other in Shanghai, from Beijing-based Miaoshi Dairy.

The news came after Danone struggled a legal battle with its joint venture partner, China's top drink company Wahaha, over the ownership of the Wahaha brand.

The company also just backed out of partnerships with two other Chinese dairy makers.

The Chinese government approved Danone's sale of its entire 20-percent stake in Shanghai-based Bright Dairy and Food for US$127 million.

Danone said the split would allow the company to expand sale of fresh milk products in China.

On December 2007, Danone also ended a joint venture with China's largest yoghurt manufacturer, Mengniu Dairy Group.