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Danone sells stake in Chinese dairy company Mengniu
![The majority of the $1.93bn proceeds will be returned to Danone shareholders through a share buyback program.](/var/wrbm_gb_food_pharma/storage/images/_aliases/wrbm_large/publications/food-beverage-nutrition/dairyreporter.com/news/manufacturers/danone-sells-stake-in-chinese-dairy-company-mengniu/12463863-1-eng-GB/Danone-sells-stake-in-Chinese-dairy-company-Mengniu.jpg)
A day after announcing the strategic sale of its 9.8% stake in China Mengniu Dairy Company Limited, Danone has finalized the deal.
The transaction resulted in total gross proceeds of HK$15.4bn ($1.93bn). The settlement of the transaction will take place on May 17, 2021.
In line with Danone’s disciplined capital allocation, the majority of the proceeds will be returned to shareholders through a share buyback program. The details of the program will be announced upon initiation.
The transaction follows the announcement on February 28, 2021, of the conversion of Danone’s long-term indirect stake in Mengniu into a direct holding, which completed on April 16, 2021.
A further announcement with regards to the success of the sale and proceeds received will be made by Danone in due course.