Chinese dairy company Mengniu published a report stating that its joint venture project with Danone, which was first raised in May 2013, is now in the process of setting up.
This indicates that the Chinese supervision authorities have approved Mengniu's introduction of a strategic partner and risk sharer in the Chinese dairy sector.
According to the report, Mengniu will hold 80% of the total registered capital of the joint venture; while Danone will hold the remaining 20%. After the founding of the JV, it will be the only platform for the two parties to implement acquisitions, investment and operation of cryogenic product businesses in China. Its business range will cover manufacturing, promotion, marketing and sales of cold yogurt, cold yogurt drinks and dairy desserts, which require refrigeration.
Prior to this, Mengniu formed a strategic partnerships with Arla Foods and Modern Dairy, aiming to promote its cold yogurt business.