Mengniu, a dairy product manufacturer, agreed to acquire a 25% stake in Yashili, a firm operating in the packaged foods industry, and a 20% stake in Inner Mongolia Dairy Joint Venture from Danone, a French multinational food-products corporation, for $425m. China remains highly strategic for Danone, and this transaction will notably allow the company to further expand its ability to locally manufacture products. In line with Danone’s capital allocation priorities, the expected proceeds will be dedicated to further deleveraging the company.