Blog: Hannah AbdullaDanone tight-lipped over Mead Johnson link rumours

Hannah Abdulla | 20 October 2014

Danone is reportedly interested in Mead Johnson

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.

At the end of last week, reports surfaced that the French dairy firm was weighing up a bid for the Enfamil infant formula maker.

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.

 

BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

NEWS

UK's Lomond acquires food distribution business Hall’s Direct

Glasgow-based Lomond, the owner of the bakery Cake, has acquired Scottish wholesale food distribution business Hall's Direct....

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?