Danone and Arcor in Argentina joint venture

Danone and Arcor have announced a new chapter in their strategic alliance in Argentina, creating a joint venture focused on the local dairy market. The new partnership will combine Danone’s dairy business in Argentina (Danone Argentina SA), which has 30 years’ presence in Argentina, along with Mastellone Hermanos SA, a company with deep heritage in Argentina’s dairy market, spanning almost a century, and Logistica La Serenísima, their common logistics subsidiary.

Building on the pair’s over two-decade long partnership, this alliance will create an integrated business, leveraging the strengths and scale of both companies to deliver greater and faster innovation, enhanced operational excellence and increased commercial reach across the category, for the benefit of all Argentinian consumers, the companies say.

The joint venture contains 11 production plants located in the region, where, among other products, milk, dulce de leche, cheeses, butters, creams, yogurts, and desserts are produced. As a result of this transaction, Danone will hold equal control of the joint venture with Arcor, and post-closing, it will be reflected within ‘equity-accounted companies’ in Danone’s financial statements based on the 50% shareholding.

“With this operation, we are delighted to take our long-term partnership with the Arcor group to the next level,” says Antoine de Saint-Affrique, Danone CEO. “This underlines our commitment to the Argentinian market and Latin America. Combining our assets will create a powerful growth platform with more opportunities for innovation, operational efficiency and greater reach. It’s all about bringing healthy, quality dairy brands to more consumers in Argentina now and in the future.”

Alfredo Pagani, president of Arcor, adds, “The creation of this dairy joint venture with Danone represents a decisive step toward enhancing the commercial, operational, and management capabilities of both companies. This alliance will accelerate growth through an integrated strategy focused on the development of high value-added products. For Arcor, this is a strategic project that reaffirms our commitment to the country and strengthens our value proposition in the consumer food products market.”

The transaction remains subject to customary closing conditions, including regulatory approval.