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PARIS - French food producer Danone sold its stake in China's Huiyuan Juice Group to a Chinese private equity fund for 200 million euros ($260 million) to bolster its most profitable business in the Chinese market, the company said Wednesday.
Danone offered its 22.98 percent stake in Huiyuan to Hong Kong-based SAIF Partners after the two finalized an agreement worth 200 million euros.
"The sale of the minority stake is a part of a strategy aiming at focusing on water division and on mineral water," Danone said.
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Danone has set up 20 factories in China and employs some 9,000 workers.
In its financial results for the first half of 2010, Danone posted a 10.1 percent rise in net profit to 848 million euros.
The company's annual report said China contributed 4 percent of its overall sales in 2009 with a gain of 14.98 billion euros.