Danone was able to pay for the assets of the Russian subsidiaries of €542 million

French group Danone could pay the former shareholders of “Unimilk” €542 million purchase of 42% stake in Cypriot Dairy JV (CIS) Holdings (a joint venture of two companies, owns assets in Russia, Ukraine, Belarus and Kazakhstan). This follows from the annual report Danone, according to “Vedomosti”.

The report says that to pay 22% of the shares, the remaining minority shareholders, it has reserved €284 million At the end of December 2015 French Danone owned 70.9 per cent of the shares of the Russian subsidiary. On February 24, the CEO of the company in Russia Bernard ducro told reporters that Danone increased its stake in the company to 92,5%. The amount of the transaction.

On the merger of the Russian business with Unimilk Danone agreed in the summer of 2010. Danone contributed to the capital of the merged company assets in the CIS at €346 million Assets “Unimilk” for the transaction were valued at €462 million in addition to get 50.9 percent of the combined company, the French paid the shareholders of “Unimilk” another €116 million, “Vedomosti”. Taking into account €542 million paid to the minority shareholders in 2015-2016, the control of the Russian business could cost Danone €658 million in cash.

According to Bernard ducro, the company’s turnover in Russia by the end of 2015 ghtdscbk 100 billion rubles, which is 4-5% higher than in 2014. In volume terms, the company in 2015 there was a slight drop in sales, he said, without elaborating on specific figures. This is because the company changed the composition of its portfolio, gradually reducing the production of dairy products in favour of high-margin products (curds, yoghurt, etc.), explained ducro. He added that Russia is among the five largest markets for Danone. Now the group Danone in Russia is one of 18 active factories, which manufacture products under the brands Danone, “ACTIVIA”, Actimel, “Rastishka”, “Danissimo”, “Prostokvashino”, “Bio Balance”, “Relevant”, “Smeshariki”, “Subject”, etc.