Under Shareholder Pressure, Danone Takes Step to Sell Chinese Asset

Under Shareholder Pressure, Danone Takes Step to Sell Chinese Asset
Danone products displayed before the French food group's 2019 annual results presentation in Paris, France, on Feb. 26, 2020. Christian Hartmann/Reuters, File Photo
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PARIS—Danone said on Sunday it was taking a first step towards selling off its stake in its Chinese dairy partner as the French food group faces pressure from shareholders to improve its performance and governance.

Danone said in a statement that following a review of its portfolio it had reached an agreement to convert its indirect stake in China Mengniu Dairy Company Limited into a 9.8 percent direct holding in the Hong Kong-listed group.