Danone approved to up stake in Bright

Danone approved to up stake in Bright

SHANGHAI, China: China's Bright Dairy & Food Co. said on Friday the government approved a request by France's Groupe Danone to increase its stake in the major dairy manufacturer to 9.7 percent.

The Ministry of Commerce gave Danone Asia Pte. Ltd. permission to buy a total of 60.9 million of Bright Dairy's shares from the Shanghai government agency that oversees state assets and from local conglomerate Dazhong Transportation (Group) Co., the dairy maker said in a statement.

The deal will increase Danone's stake from 3.85 percent, making it Shanghai-based Bright Dairy's third-biggest shareholder.

Danone earlier signed agreements to pay the Shanghai government 121 million yuan (US$14.6 million) and Dazhong 78 million yuan for their respective stakes.

Danone also owns a 30 percent share in Hangzhou Wahaha Group Corp., China's biggest beverage maker, an alliance that has made it one of China's biggest suppliers of yogurt and other dairy products. -- AP