ST. PETERSBURG, Russia — France’s Danone has announced an agreement to merge its operations in Russia and other countries of the former Soviet Union with a large Russian dairy.
Danone says the merger with Russia’s Unimilk will become the largest producer of dairy goods in the former Soviet Union, with annual sales reaching euro1.5 billion (US$1.8 billion).
Danone said in a statement Friday it would own 57.5 per cent of the merged company, with Unimilk owning the remaining 42.5 per cent. Financial details were not disclosed.
The French yogurt and bottled water producer says the two companies’ synergy is ideal since Danone has a strong market presence in the European part of Russia while Unimilk has a better profile further east.
The deal was announced on the sidelines of a major business forum in St. Petersburg.