May 17, 2007

France's Groupe Danone acquires 70 percent of Vialat's Dairy Business

Groupe Danone, the world's biggest yogurt maker, has bought 70 percent of the fresh dairy business of Vialat in Chile to expand its business in Latin America.

It said the deal, with stake price undisclosed, is expected to be completed by the end of June.

Fresh dairy sales of Vialat, a unit of closely held investment company Bethia SA, reached 30 million euros (US$41 million) in 2006, Danone said.

In April, Danone said demand for its digestion-enhancing Activa brand in Latin America aided a 3.9 percent increase in first-quarter sales.