India, March 25 -- Danone and Arcor announce a new chapter in their strategic alliance in Argentina, creating a joint venture focused on the local dairy market. The new partnership will combine:

Danones dairy business in Argentina (Danone Argentina SA), with thirty years presence in Argentina, deeply rooted in families daily lives;

Mastellone Hermanos SA, a company with deep heritage in Argentinas dairy market, spanning almost a century;

Logistica La Serensima, their common logistics subsidiary.

Building on the pairs over two-decade long partnership, this alliance will create an integrated business, leveraging the strengths and scale of both companies to deliver greater and faster innovation, enhanced operational excellence and increased commercial reach across the category, for the benefit of all Argentinian consumers.

The joint venture will also open new growth opportunities in the dairy market through its eleven production plants located in the region, where, among other products, milk, dulce de leche, cheeses, butters, creams, yogurts, and desserts are produced.

As a consequence of this transaction, Danone will hold equal control of the joint venture with Arcor, and post-closing, it will be reflected within equity-accounted companies in Danones financial statements based on the 50% shareholding.

"With this operation, we are delighted to take our long-term partnership with the Arcor group to the next level. This underlines our commitment to the Argentinian market and Latin America. Combining our assets will create a powerful growth platform with more opportunities for innovation, operational efficiency and greater reach. Its all about bringing healthy, quality dairy brands to more consumers in Argentina now and in the future," said Antoine de Saint-Affrique, CEO of Danone.

"The creation of this dairy joint venture with Danone represents a decisive step toward enhancing the commercial, operational, and management capabilities of both companies. This alliance will accelerate growth through an integrated strategy focused on the development of high valueadded products. For Arcor, this is a strategic project that reaffirms our commitment to the country and strengthens our value proposition in the consumer food products market," said Alfredo Pagani President of Arcor.

The transaction remains subject to customary closing conditions, including regulatory approval.

Published by HT Digital Content Services with permission from FoodTechBiz.