Danone: Oddo still a buyer after deal in China
(CercleFinance.com) - Danone has announced that it has reached an agreement with Mengniu to sell its 25% stake in Yashili and its 20% stake in the Inner Mongolia Dairy joint venture.
The agri-food group has also announced the acquisition of 100% of Dumex Baby Food, a Chinese infant milk manufacturer, owned by Yashili.
Following this announcement, Oddo confirms its Outperform recommendation with a target price of 71 euros.
The first benefit analysts see in this deal is that Danone has succeeded in untying the Gordian knot in China that was created 8 years ago between Danone, Yashili and Mengniu following the false botulism scare (August 2013).
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