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Stockholders Push Danone To Divest Stake In Chinese Dairy

March 1, 2021: 12:00 AM EST
According to reports, disgruntled Danone shareholders have pushed the company to sell its $2 billion stake in Mengniu dairy later this year to fund stock buybacks and boost shareholder returns. The announcement came hours before Danone’s board met to discuss its response to calls from investors such as Artisan Partners Asset Management for management changes. Danone Chairman Emmanuel Faber’s suggestion that he shed his CEO role was later approved by the board of directors. Danone first took a stake in Mengniu in 2013. Its 9.8 percent holding is held indirectly in a venture with COFCO Corp., Mengniu’s biggest shareholder. Danone said that China will remain highly strategic for the company following the sale. 
Corinne Gretler, "Danone Plans to Sell China Dairy Stake to Appease Shareholders", Bloomberg, March 01, 2021, © Bloomberg L.P.
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