Simpson Thacher is representing Danone Asia Pte. Ltd. (“Danone”) in connection with the formation of joint ventures with Inner Mongolia Mengniu (Group) Co., Ltd. (“Mengniu”) for chilled yoghurt and related products in China. Mengniu will own an 80% equity interest and Danone 20% in the joint ventures. The joint ventures are subject to customary closing conditions, including obtaining anti-monopoly clearance and other regulatory approvals. In addition, an affiliate of Danone will form a joint venture with an affiliate of COFCO Corporation (“COFCO”), the largest shareholder of China Mengniu Dairy Company Limited (“Mengniu Listco”), a Hong Kong listed company and the parent of Mengniu. COFCO will transfer its holding of 8.33% of the outstanding shares of Mengniu Listco to the joint venture and Danone, by subscribing to 49% of the shares of the joint venture, will become an indirect owner of approximately 4% of the outstanding shares of Mengniu Listco. Danone will invest a total of approximately $420 million in the two transactions.
Danone and its affiliates are an international group present on 5 continents, holding top positions in various categories of healthy foods including fresh dairy, baby nutrition and waters. Mengniu is a leading dairy product manufacturer in China, with diversified products including liquid milk products, milk beverages and yogurt, ice cream and other dairy products. COFCO is the largest supplier of diversified products and services in the agricultural products and food industry in China.
The Simpson Thacher team includes: Doug Markel, Yang Wang and Qi Yue (Beijing M&A), Cora Lei (Beijing Capital Markets) and Christopher Wong (Hong Kong Capital Markets).
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