Danone buys into ChinaThis article was originally published in Foodnews
FRENCH food giant Danone has agreed to pay as much as US$122.3 million for 159 million shares in Chinese fruit juice manufacturer Huiyuan Juice Group Ltd. Huiyuan is raising US$307 million in a Hong Kong IPO (FOODNEWS 15 September 2006) . Danone invested US$137.25 million in series A shares in Huiyuan in June 2006. Including its top-up investment in Huiyuan's Hong Kong share sale, Danone's shareholding will rise to 22.2%. Huiyuan is the market leader in China's juice drinks market with a market share of 17% by value. It enjoys a very strong position in the valuable nectar and pure juice sectors, with shares of 30% and 42% respectively.