Indofood CBP Sukses Makmur, Indonesia’s largest producer of instant noodles, has announced the acquisition of 100% of Danone’s Indonesian dairy arm, Danone Dairy Indonesia, for US$20 million as part of a plan to strengthen its dairy business to meet growing domestic demand. In recent years, Indofood CBP has been working toward expanding its business beyond instant noodles. In 2012 it formed a joint venture with Japan’s Asahi Group Holdings to create a non-alcoholic beverage venture. Six percent of Danone’s 2013 revenue was generated from Indonesia, making it the company’s fifth largest market – but the company has been facing increasing competition from rivals such as Fonterra which is building its first production plant in the country. The deal will include all shares, and the Milkuat trademark, a core product of Danone Dairy Indonesia. The deal is scheduled to close by the end of 2014.
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