France: Danone to step up investment in Africa and retain medical nutrition business

Danone has announced that investment in Africa and retaining its medical nutrition business are part of the company's strategic focus for the next few years.

In an interview with the Financial Times, Danone's new chief executive Emmanuel Faber confirmed that the firm would not be selling off its medical nutrition arm, valued at approximately €3 billion, despite speculation over a possible divestment in recent months. Mr Faber reiterated his "commitment to the four businesses at Danone", saying they had "tremendous potential".

Meanwhile, it is reported that the company is to create a new Africa unit, which will be headed by Danone's current finance director Pierre-Andre Terisse. An estimated additional €1 billion capital expenditure is planned for the continent over the next five years, including establishing new bottled water factories and strengthening dairy ventures in east and sub-saharan Africa.

Source: Financial Times