SUBSCRIBE

Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

News > Suppliers

Read more breaking news

 

 

Is Danone feeling the need for Mead?

By Shane Starling+

28-Jul-2014
Last updated on 30-Jul-2014 at 10:53 GMT2014-07-30T10:53:01Z

Mead Johnson Nutrition: A Danone target?
Mead Johnson Nutrition: A Danone target?

 Danone shares rose today as rumours strengthened the French dairy giant would sell its medical and paediatric nutrition business (Nutricia), but is the firm streamlining its activities around its core foods businesses or just shifting infant-medical gears?

Media outlets including the Wall Street Journal and The Financial Times reported Danone is in advanced discussions over a potential €3+bn deal for Danone-Nutricia with Illinois-based drug firm Hospira, although previous suitors for the division like Nestlé, Fresenius were not being totally ruled out.

Analysts said Danone, which underperformed in the first half this financial period and has been criticised for losing its innovation edge amid rising raw material costs, slow consumer demand and regulatory upheaval, would use any sales funds to target Mead Johnson Nutrition.

Selling to buy?

Mead may appeal as it is more tightly focused on infant nutrition.

“The question is how Danone would invest the proceeds of a sale,” Patrik Lang from Julius Baer Group told Bloomberg.

“It’s possible a bigger acquisition is imminent – Mead Johnson would be a candidate.”

Mead Johnson Nutrition is estimated to be worth in the vicinity of €14bn and owns infant formula brands such as Enfamil.

Nutricia offerings include Souvenaid (for the elderly) and Nutrini (children).

Danone, which is the world’s largest yoghurt enterprise with mega-brands like Activia and Actimel, was unavailable for comment. Hospira has also not commented on the matter.

Danone Group shares were trading at about €56 today on the Paris stock exchange.

One report suggested Hospira was interested in the deal, in part at least, as it would be able to shift its tax base to France.

Related products

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Fytexia
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Indena
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Capsugel
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Ingredion
Balancing Innovation and Risk in Sports Nutrition Ingredients
NSF-International
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Roquette
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars