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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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).
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.