Danone joins forces with Russia's Unimilk
French food giant Danone and Russia's Unimilk announced on Friday they were combining their fresh milk interests in Russia, Ukraine, Belarus and Kazakhstan.
Danone, the world number one in milk products, will hold 57.5 percent of the new entity, with Unimilk shareholders taking the remainder.
No value was put on the deal which will be done by way of a contribution of assets and Danone buying shares in the new company, Danone-Unimilk.
The venture should have annual sales of about 1.5 billion euros (1.86 billion euros) with a market share of 21 percent.
Danone and Unimilk said their two businesses were very complementary and there would be significant synergies on sales and cost in the new company.
© 2010 AFP