Reuters
Danone, the world’s largest yoghurt maker, plans to spend €278m to further tighten its control over Morocco’s main dairy company, Centrale Laitiere, as it reduces its dependence on slow-growth Europe.
Danone will buy an additional 21.75% of Centrale Laitiere, which has a domestic market share of nearly 60%, taking its stake to 90.86%, Danone said in a statement.
The deal follows news last week that Danone was investing $550m in Chinese milk powder maker Yashili International Holdings.
Analysts have also speculated that Danone might sell its medical nutrition business and push deeper into markets such as China and Africa through acquisitions.
Danone, which generates 60% of its turnover in emerging countries, has invested more than €1bn in Africa over the past two years. In July, it bought East Africa’s top dairy producer, Brookside, for an undisclosed amount.
Last year, the owner of yoghurt brands Activia and Actimel bought a 49% stake in Fan Milk International, a west African producer of frozen dairy products and juices with sales of €120m.
Danone had already spent €550m to raise its stake in Centrale Laitiere to 67% in 2012.
Shares in Danone were 1.3% lower at €53.53 before the close in Paris on Monday.
