Danone offloads Dumex unit to Yashili

Danone SA, the French dairy giant, has offloaded its struggling Dumex China unit to a subsidiary of China Mengniu Dairy Co Ltd for 150 million euros ($159 million).

The Paris-based company said the sale to Yashili International Holdings Ltd, which is yet to be approved by the relevant authorities and Yashili shareholders, would create "a strong local infant milk formula brand platform".

Acquiring the loss-making infant formula producer's China unit will help Yashili to expand its distribution network in first- and second-tier cities and improve its overall brand value, said industry experts.