The deal will enable Danone to target the premium segment with WhiteWave Food’s product offerings.
According to a source who is familiar with the matter at hand, the world’s biggest yogurt manufacturer, Danone SA, is said to be in advanced talks with WhiteWave Foods Co, an organic food producer based in the U.S. so as to revitalise its growth prospects.
If the deal goes through, WhiteWave’s nutritious and healthy offerings, including its Earthbound Farm Organic salad and Silk almond milk will boost Danone’s pursuit of taping affluent consumers, in its efforts to mitigate a few setbacks in challenging markets such as Russia and Brazil.
Citing sources who are familiar with the matter at hand, the Financial Times has reported that the deal could potentially be announced as early as sometime today with the value of the deal hovering to almost $10 billion. WhiteWave has a market capitalization of $8.3 billion.
Sources preferred the cover of anonymity since the matter is still confidential.
Both, WhiteWave Foods and Danone were not immediately available for comments outside regular business hours.
As per Emmanuel Faber, who came to the helm at Danone in October 2014, the company will soon return to being “strong profitable and [have a] sustainable growth” by 2020.
He is set to review its business profile in China and completely overhaul its dairy division wherein earlier it had cut costs and launched fresh products.
The acquisition comes at a time when WhiteWave’s shares are closing-in on their 11 month high, buoyed by strong demands for the company’s beverages, milk and dairy products, frozen desserts and yogurts.
Activia and Actimel, both Danone’s brands compete at a global level with Nestle SA and Unilever Plc.
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