Danone to lift stake in China's Mengniu for $665mn

Danone (BN:EPA) is raising its stake in Mengniu (2319:HKG) for US$665 million, aiming to increase local demand and secure greater control over supply quality in the region, Reuters reported. The investment by Danone will boost its holding to 9.9% from 4%, making it the Chinese company’s second-biggest shareholder after China’s COFCO Dairy Investment. China is an important market for Danone, accounting for about 6% of global sales US$27.2 billion. Sales of dairy products in China are expected to nearly double from 2012 to 2017 to about US$89 billion.