Rumours that French dairy giant Danone is preparing to launch a takeover move on Dean Foods have pushed up shares in the US dairy processor.
Shares in Dean Foods rose 6.4% on Friday (5 March) to close at US$16 following reports that Danone is eyeing the maker of Horizon Organic.
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However, analysts have remained sceptical over the rumours.
“I just don’t see it from a financial or strategic perspecitve,” Jon Cox, head of food and drink research at Kepler Capital Markets told just-food.
Danone has indicated that it hopes to expand through bolt-on acquisitions in high growth segments such as baby food, dairy and clinical nutrition.
In dairy, the French company has focused on higher growth segments, such as Activia yoghurt and probiotics. Dean Foods, the largest dairy group in the US, is primarily focused on milk production.
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By GlobalDataDanone has also indicated that its sights are firmly set on emerging markets such as Russia and China.
Both companies declined to comment on the speculation.
