Dive Brief:
- A senior executive at Danone said the global dairy giant has not made a decision to pursue a takeover of Mead Johnson Nutrition, a maker of infant formula.
- The unusual statement follows a report Friday by Reuters that Danone, the world's largest yogurt maker, had decided to buy U.S.-based Mead Johnson. The statement neither confirms nor denies that Danone is considering a purchase.
- Mead Johnson declined to comment on the reports.
Dive Insight:
There's no saying with certainty what really happened on Friday, other than Danone's board met and Reuters filed a report.
Still, the gist of that initial news report — that Danone has decided to sell its medical-nutrition unit and use the proceeds to buy Mead Johnson — is hardly a revolutionary idea. Wall Street analysts have been speculating for months about that exact scenario. Mead Johnson would appear to be a nice addition to Danone's fast-growing business in infant formula.