Danone increases stake in Morocco dairy

Danone is raising its interest in Centrale Laitière to 67% by acquiring part of SNI’s shareholding for a total €550 million, the company says. Centrale Laitière, of which Danone has been a 29.2% shareholder since 2001, is Morocco’s leading dairy product company with nearly 60% of the market. It has sales of around €600 million and operates the country’s largest distribution platform with 30 storage hubs serving 70,000 points of sales. The company is market leader in three businesses: milk, fresh dairy products and cheese. The Danone brand is already very well known in Morocco through products including Yawmy, Moufid and Activia, all sold by Centrale Laitière.

The current transaction will allow Danone to invest more in a market with major potential, and thus support growth of the local dairy industry, the dairy giant says. The move also confirms the strategic appeal of markets in North Africa for Danone. This acquisition is expected to be finalized by the end of 2012.