Danone withdraws as shareholder of Yakult

French food company Danone has sold its remaining stake in Japanese probiotics producer Yakult, the company said. Danone wants to use the capital arising from the sale elsewhere and strengthen the balance sheet.

The sale of the remaining 6,61% that Danone still owned will bring the company €470 million. The dairy group had been a shareholder since 2004 and at its peak had a stake of 21,29%. In 2018, Danone sold most of it, as it failed to acquire the probiotics business. The transaction is reportedly set to take place on Friday, October 9, 2020.

Probiotics
The sale is not entirely unexpected. Because Danone was unable to achieve a takeover of Yakult, the company decided to invest the money elsewhere. Having a large interest no longer fit the strategy. In addition, Danone has a competitive product on the market with Actimel.

Despite the termination of the agreement, both parties have stated that they will continue to work together in the long term to promote probiotics. In addition, they will maintain existing commercial partnerships, including the joint ventures in India and Vietnam, for example.

Vegetable products
Danone has largely refuted its focus on producing and selling herbal products in the European and American markets under the Alpro and Silk brands. At the beginning of this year, the company announced that it would boost sales of plant products from €2 billion in 2019 to €5 billion in 2025.

The dairy processor, which was originally French, is responding to the increasing demand for vegetable products. These branches in the US and parts of (Western) Europe are doing well, but the company wants to significantly expand the sales of plant products in other parts of the world, such as Eastern Europe, Russia and Latin America.

Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

j.cosse@boerenbusiness. Nl

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