French dairy giant Danone SA (DANOY.PK) is considering a sale of its 20 percent stake in Japanese dairy-drink producer Yakult Honsha Co., worth about $2 billion, Bloomberg reported citing to people familiar with the matter.
The report indicated that Danone has held internal discussions about a possible disposal. The deliberations are at an early stage and no final decision has been made.
A sale would end the French company's 10-year-old agreement with Yakult, whose probiotic and fermented milk drinks are similar to offerings from Danone. It could also raise cash for potential acquisitions, the report said.
Danone reportedly discussed possible targets including U.S. baby-food maker Mead Johnson Nutrition Co., which is valued at $20.5 billion, at a board meeting last month.
The report said that Danone is also discussing a sale of its medical-nutrition business with potential suitors, including Fresenius SE and several buyout firms.
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