PARIS - French food producer Danone sold its stake in China's Huiyuan Juice Group to a Chinese private equity fund for 200 million euros ($260 million) to bolster its most profitable business in the Chinese market, the company said Wednesday.
Danone offered its 22.98 percent stake in Huiyuan to Hong Kong-based SAIF Partners after the two finalized an agreement worth 200 million euros.
"The sale of the minority stake is a part of a strategy aiming at focusing on water division and on mineral water," Danone said.
"Danone will continue to improve growth opportunities in its core businesses in China, which are dairy products, water, child and medical nutrition to quicken the company's development in the Chinese market," it added.
Danone has set up 20 factories in China and employs some 9,000 workers.
In its financial results for the first half of 2010, Danone posted a 10.1 percent rise in net profit to 848 million euros.
The company's annual report said China contributed 4 percent of its overall sales in 2009 with a gain of 14.98 billion euros.
