Yakult Honsha Co Ltd, the Japanese health drink manufacturer will dissolve its tie up with Danone SA of France. The dissolution was confirmed by an anonymous source familiar with the matter.
Despite the dissolution, Danone would retain its existing 20% shareholdings in Yakult.
While rumors of a takeover by the French food giant have been swirling in the past few weeks, this was laid to rest by John Davison, president of the dairy products division of Danone. He assured the public that a hostile takeover is not how the conglomerate operates its business.
The stake was purchased by Danone back in 2000 with the two firms entering into a strategic agreement back in 2004. Under the terms of that strategic partnership, Danone would be limited in its shareholdings to just 20% for the next five years.
This agreement was then revised in 2007 with an included provision for an extension of three years until its expiry last year.
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