Chinese dairy producer Bright Dairy & Food Co. said today (Friday) that the Chinese government had given approval to French group Danone to raise its stake in Bright Dairy to 9.7%.
In a statement quoted by the news agency Dow Jones, Bright Dairy said the ministry of commerce approved Danone Asia Pte. Ltd.’s planned purchase of 40.1 million of Bright Dairy’s shares from a Shanghai government agency which oversees state assets.
Danone Asia had also been approved to buy 20.8 million Bright Dairy shares from Dazhong Transportation, which operates one of Shanghai’s leading taxi firms.
After the deal, Danone will become the third largest shareholder in Shanghai- based Bright Dairy, with its stake rising from 3.85%.