French yoghurt maker Danone on Friday agreed to buy a 25% stake in Hong Kong-listed Yashili International Holdings for HK$4.4 billion US$567 million, enabling it to expand its brands and distribution footprint in mainland China.
“Danone mainly has the Dumex brand in China in terms of infant nutrition powder, which is more at the premium end of the market,” Torsten Stocker, partner at management consulting firm AT Kearney, told FinanceAsia.
“For Danone, it is more a broadening of the brand portfolio towards mid-priced or mid-tier brands, said Stocker, adding that Yashili could also benefit from Danone's expertise in formulating infant nutrition powder....
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