A memorandum of understanding was signed in May, according to which Danone would buy 20% of Strauss, at a value of $250-300 million.
"We are planning to sign an agreement to acquire 20% of the Struass concern next week in Israel," Danone International chairman and CEO Franck Riboud said today, in an interview with Reuters in Singapore.
Riboux said the process of closing the deal would continue until early January. A memorandum of understanding between Strauss and Danone was signed in May, according to which Danone would buy 20% of Struass, at a value of $250-300 million. The agreement states that Danone will provide know-how for product manufacturing to Strauss, and would enter into joint production of other food items, such as chilled baby food.
In the past, Danone was active in the Israeli market through Strauss, but left the Israeli market in the 1980s due to the Arab boycott. In today’s Reuters interview, Riboux said "We returned to Israel because we have a good relationship with the Struass family, and will continue to supply them with technical assistance."