Danone buys dairy plants in China: report

0 Comments | AFP, January, 2008

SHANGHAI (AFP) — French food giant Danone, which is embroiled in a bitter feud with a Chinese partner, has bought two domestic dairy plants as it seeks to reshuffle its China operations, state media said Tuesday.

Danone has signed an agreement to buy two manufacturing plants, one in Beijing and the other in Shanghai, from Beijing-based Miaoshi Dairy, the China Business News reported, citing unnamed sources.

"Danone is likely to announce the deal soon," a source close to Danone told the newspaper, without elaborating on the financial details.

Spokespeople for Danone and Miaoshi contacted by AFP either declined comment or said they were unaware of the matter.

The move came as Danone struggled in a long and bitter legal battle with its joint venture...