Chinese dairy company partners with Danone

World’s largest yogurt maker Danone (BN.EPA, DNN.BIT, DAN.SWX) will invest US$417 million in two deals with China’s Mengniu Dairy (2319.HKG), signaling the French company is seeking a comeback in China, Reuters reported. A joint venture between Danone and Chinese state-owned food company COFCO will take an 8.3% stake in Mengniu. Danone has also entered into a joint venture with Mengniu to produce and sell chilled yogurt in China, aiming to grab a 21% market share. Mengniu, by partnering with a leading international brand, hopes to restore confidence in its products after multiple tainted milk scandals.