Danone Invests in Mengniu as Chinese Demand Food Safety

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Danone, owner of Activia yogurt and Evian water, will spend about 325 million euros ($417 million) to form a joint venture and invest in China’s biggest dairy producer to expand its brands in the most populous nation.

Danone will have an initial indirect interest of about 4 percent in China Mengniu Dairy Co., with the aim of increasing that in the future, the Paris-based company said in a statementBloomberg Terminal today. It will also set up a venture with Mengniu for yogurt products in China. Mengniu shares surged the most in four years.