Is Danone feeling the need for Mead?

By Shane STARLING

- Last updated on GMT

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

Related tags Finance Danone

 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.

souvenaid

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 news

Related products

show more

Empowering Women Through the Life Cycle

Empowering Women Through the Life Cycle

Content provided by Glanbia Nutritionals | 07-Nov-2023 | Product Brochure

As discussions around female empowerment widen, and advances in women’s health access and provision accelerate, the implications for business, healthcare,...

Analyzing the unknown threat from Microplastics

Analyzing the unknown threat from Microplastics

Content provided by Agilent Technologies | 06-Nov-2023 | Infographic

Microplastics are any plastic-derived synthetic solid particle or polymeric matrix, ranging in size from 1 µm to 5 mm and insoluble in water.

Pycnogenol® Supports Cognitive Function

Pycnogenol® Supports Cognitive Function

Content provided by Horphag Research | 18-Sep-2023 | White Paper

Clinical research shows daily supplementation with Pycnogenol® may help support brain function in a variety of age groups with results showing improved...

Functional Beverage Market Insights in ASPAC

Functional Beverage Market Insights in ASPAC

Content provided by Glanbia Nutritionals | 06-Jul-2023 | Product Brochure

High growth ahead for protein beverages makes Asia Pacific (ASPAC) the market to watch. Consumer research shows new usage occasions, key consumption barriers,...

Related suppliers

Follow us

Products

View more

Webinars

Food & Beverage Trailblazers

F&B Trailblazers Podcast