French dairy company Danone SA (EPA:BN) said today it has received court approval to buy US company WhiteWave Foods Co. (NYSE:WWAV) US$10.4bn.
The companies expect the merger to close within five business days from when the US District Court for the District of Columbia issued an order to allow the deal to be completed yesterday.
Danone is selling one of its US dairy subsidiaries, Stonyfield, as part of an agreement with the US Department of Justice for clearance of the acquisition of WhiteWave, a maker of high-end natural and health-focused foods.
Stonyfield generated about US$370mln in turnover in 2016.
The world’s largest yoghurt maker has said the deal will help it address the consumer swift towards healthy eating.
Danone will become the biggest producer of organic food across the globe once the transaction is completed. It expects the deal to boost full year like-for-like sales growth by 0.5% to 1%.
Emmanuel Faber, Danone’s chief executive, said: “Danone will notably double the size of its North America business to more than $6 billion in turnover, allowing the company to become a Top 15 Food & Beverage company in the US and the number one in refrigerated dairy (excluding cheese) in this key strategic geography.”
Source: ProActiveInvestors
LinK: http://www.proactiveinvestors.com/companies/news/176093/danone-receives-court-approval-for-whitewave-foods-merger-176093.html