Danone agrees to sell remaining minority stakes in Mengniu partnerships and acquire Dumex


Press release – Paris, May 6, 2022

Danone agrees to sell the remaining minority
investments in Mengniu partnerships and acquire DumeX

Danone announces today that it has agreed to sell to Mengniu the company’s 25% stake in Yashili and the 20% stake it holds in Inner Mongolia Dairy Joint Venture. At the same time, Danone will acquire from Yashili 100% of Dumex Baby Food Co Ltd, a Chinese manufacturer of infant formula.

The proposed transactions are not required to close simultaneously. Subject to the satisfaction or waiver of the conditions of each of the proposed transactions, it is expected that the earliest closing may occur this year. Further announcements of satisfaction or, as the case may be, waiver of the terms of the proposed transactions will be made in accordance with the Listing Rules and the Takeover Bid Code of Hong Kong.

The completion of these transactions will lead to the conclusion of the partnership that Danone has maintained with Mengniu over the past few years, following the sale of Danone’s 9.8% minority stake in Mengniu in 2021.

China remains highly strategic for Danone, and today’s announcement will notably enable the company to further expand its capacity to manufacture infant formula locally. In accordance with Danone’s capital allocation priorities, the expected proceeds will be devoted to the continued deleveraging of the company.

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This press release contains certain forward-looking statements regarding Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “target “, ” believe “. “, “expect”, “orientation”, “expect”, “likely”, “may”, “should”, “goal”, “target”, “could”, “will”, “could”, “predict”, “continue”, “convinced” and “confident”, the negative or the plural of these words and other comparable terms. The forward-looking statements contained in this document include, but are not limited to, forecasts of activities, operations, orientation, performance and future results of Danone.

Although Danone believes that its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, see the “Risk Factors” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).

Subject to regulatory requirements, Danone does not undertake to publicly update or revise these forward-looking statements. This document does not constitute an offer to sell, nor a solicitation of an offer to buy Danone securities.


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