French yogurt maker Danone is contemplating sale of its 20% stake in Tokyo based dairy-drink producer Yakult Honsha, which if materialised, can raise cash for any future acquisitions by Danone.
Bloomberg reported that Danone already had internal discussions about this plan but no final decision has been made as deliberations are at an early stage.
No comment was forthcoming from both the representatives of Danone and Yakult.
In 2013, Danone and Yakult had ended a nine-year alliance, replacing it with a looser cooperation framework.
Yakult officials earlier said that the two companies had difficulties in resolving differences in corporate culture and marketing techniques, Reuters reported.
On top of this, Danone is also seeking growth after reporting its first annual profit decline in more than a decade last year. Sources familiar with the matter say that it is actively pursuing US infant formula maker Mead Johnson Nutrition Group that is valued at $20.5bn.
The company is also planning a sale of its medical-nutrition business with potential suitors, including Fresenius SE and several buyout firms, Bloomberg said.
