Blog: Danone tight-lipped over Mead Johnson link rumours
Hannah Abdulla | 20 October 2014
Danone is reportedly interested in Mead Johnson
Some analysts might be breathing a sigh of relief at news Danone is rejecting speculation it is about to swoop for infant-formula giant, Mead Johnson.
According to sources, Reuters said an "internal strategic review" saw Mead Johnson top Danone's list of "preferred" acquisitions.
In reports since then however, Danone's group secretary, Laurent Sacchi, has said the matter was "absolutely not discussed" at the firm's board meeting on Friday 17 October. Neither was any decision made on what the priorities are in the group's external growth programme, nor is there any strategic review under way, the newswire said.
He did not however, comment on whether or not Danone was interested in Mead Johnson.
It's not the first time the two names have been used together in the same sentence. In summer this year, following the sale of its medical nutrition unit, analysts questioned whether Danone should use the cash to foot the takeover of Mead Johnson.
While the two's operations complement each other, there are concerns about how the move could benefit Danone.
MainFirst analyst Alain Oberhuber noted that Mead Johnson could only claim to enjoy small pockets of growth. "It has an attractive Chinese and South American infant formula business but it is less attractive in Europe and the USA," he said.
Kepler Cheuvreux analyst Jon Cox added he'd rather see the funds used in "bolt on deals" than "a big bang acquisition".
For now it appears Danone is trying to stay as tight-lipped as possible. The Danio-maker did not respond to just-food's requests for comment.
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....
The Obama administration appears to have conceded the landmark Trans-Pacific Partnership (TPP) trade deal will not be pushed through in the lame-duck session of Congress before Donald Trump is inaugur...
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- How Tyson's new CEO plans to grow the meat group
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti