November 30, 2011
Danone to increase stake in Kingiseppsky Dairy Plant
Russia's Danone wants to add its stake to 65.5% in the Kingiseppsky Dairy Plant near Saint Petersburg, Russia.
Russia's competition regulator, the Federal Antimonopoly Servic, announced Tuesday (Nov 29) that Unimilk has requested approval to obtain a majority stake. It currently holds 23.31%.
Danone refused to comment on the deal. A company spokesperson said: "We only comment on closed deals."
However, Detskoselsky, the Russian company that owns the majority of the shares in the dairy plant, confirmed that talks are being held.
Russian media reported earlier this month that Detskoselsky had offered Danone 100% of the shares of the plant as it is allegedly only using 10% of the 140 tonnes per day capacity.
Kingiseppsky Dairy Plant produces under the trademark Lateo. Unimilk acquired a stake in the plant last year, before the company was taken over by Danone.
Danone earlier this month announced plans to expand production at its production facility in facility in Labinsk, to meet the growing demands for dairy products in the south of the country.