French food company Danone has increased its stake in Morocco's leading dairy company Centrale Laitière to 67%with an investment of€550m,as a part of its plan to strengthen its presence in North Africa.
Danone,which held a 29.2%stake in Centrale Laitière since 2001,raised its stake by buying a part of the shareholding of SociétéNationale d'Investissement(SNI),an investment vehicle owned by Morocco's royal family.
According to Danone,this transaction confirms the strategic appeal of markets in North Africa for the company.
Danone chief executive Franck Riboud told French daily Les Echos in an exclusive interview that the company plans to generate€1bn sales from Morocco,Algeria,Tunisia and Egypt,of which€900m will be from dairy products.
The company also plans to launch baby food and medical nutrition products in the region,he added.
The acquisition,which is subject to the approval of relevant authorities,is expected to be completed by the end of 2012.
Danone noted that with the majority stake,it will completely integrate Centrale Laitière into its consolidated accounts,and expects the transaction to be accretive to the earnings per share from the first year.
Centrale Laitière holds nearly 60%share in Morocco's dairy market,with a leading position in three core businesses:milk,fresh dairy products and cheese.
