Danone Expands in Morocco With €550 Million Acquisition
Danone is paying Eur550 million to increase its stake from 29.2% to 67% in Moroccan dairy company Centrale Laitiere. Danone has held its 29.2% shareholding since 2001.
Centrale Laitiere is Morocco’s leading dairy products company with nearly 60% of the market. It has sales of around Eur600 million in a fast-growing market and operates the country’s largest distribution platform with 30 storage hubs serving 70,000 points of sales. The Danone brand is already very well known in Morocco through products including Yawmy, Moufid and Activia, all sold by Centrale Laitiere.
The deal represents a key step in Danone’s development in Morocco. It will allow the French food and beverages group to invest more in a market with major potential, and thus support growth of the local dairy industry. The move also confirms the strategic appeal of markets in North Africa for Danone.
This acquisition is subject to the approval of relevant authorities and is expected to be finalized by the end of 2012. With a majority interest, Danone will fully integrate Centrale Laitiere into its consolidated accounts, and the transaction will be accretive for Danone net earnings per share from the first year.
