China Mengniu Dairy, the country's largest milk producer, plans to work with France's Groupe Danone to sell yogurt products in China. The total investment in the joint venture with Danone, the biggest yogurt maker in the world, would be US$1.6 billion, the South China Morning Post reported. Mengniu would hold 51% to Danone's 49% and the former would finance the deal using internal resources. Mengniu posted a 39% jump in net profits in the first half on sales of higher end products. Shares in the company have risen 168% this year to HK$17.70 (US$2.27) on the Hong Kong Stock Exchange.
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