French dairy company Danone is increasing its stake by more than 90% in Moroccan dairy firm Central Laitière with an investment of €278m ($348m), in an effort to cut down its reliance on European region, where dairy is experiencing slow growth.
The world's largest yoghurt maker Danone intends to buy an additional 21.75% interest in Central Laitière.
Central Laitière is Morocco's largest dairy processor holding 60% market share.
Danone bought 29% stake in Central Laitière in 2001.
Danone further acquired an additional 47.8% stake from SNI for $680m in February 2013.
The growth of African markets has been of particular interest to Danone. It has invested over a billion euros in the continent in the last two years.
In July, it acquired Brookside, a leading dairy producer in East Africa, for an undisclosed amount.
In 2013, the French company, which owns yoghurt brands such as Activia and Actimel, acquired a 49% stake in West African producer of frozen dairy products Fan Milk International, which reported annual sales of €120m, reports Reuters.
Image: Danone's factory in Bierun, Poland. Photo: courtesy of incus.
