October 21, 2004

Danone Asia to Invest in China's Bright Dairy

The Asian unit of French dairy group Danone is to invest further in Chinese dairy products company Bright Dairy & Food Co.

Danone Asia signed an agreement to pay RMB78.14 million (US$9.4m) for a 2% stake in the Shanghai-listed company from Dazhong Transportation. After the share transfer, which is pending government approval, Danone Asia will have a 5.85% stake in Bright Dairy.

Danone announced last year that it was to buy a 3.85% stake in Bright Dairy from Shanghai State-Owned Assets Operation Co, but government approval for the transaction is still pending.