19 April 2006 - The international financial press reports that dairy giant Groupe Danone plans to raise its stake in Chinese dairy products group Shanghai Bright Dairy to 20% from the current 9.7%.
Responding to a fast-growing demand in the market for milk products, Danone Asia Pte is reportedly going to pay 358 million yuan (USD 44.7 million) to increase its stake in the Chinese producer.
The transaction, however, requires government approval.
Shanghai-based Bright Dairy, the world's seventh-largest milk producer, competes with China Mengniu Dairy Co., Beijing Sanyuan Foods Co. and Shijiazhuang San Lu Group in the nation's liquid and powdered milk market, reports ‘Bloomberg’.