The Board of China Mengniu Dairy Co. Ltd. announced that on 20 May 2013, Mengniu entered into the framework agreement with Danone Group for the proposed sino-foreign equity joint venture arrangement for the Chilled Business in the Territory. Mengniu and Danone will each implement a restructuring plan for their respective Chilled Business in the Territory and it is proposed that the Joint Venture, which will effectively be held as to 80% and 20% by Mengniu and Danone respectively at Completion, will comprise 12 JV Companies and the JV Holdco. The Joint Venture arrangement constitutes a deemed disposal of 20% of the Mengniu Chilled Business Subsidiaries and an acquisition by the Group of the Danone Chil ed Business Subsidiaries, which, subject to the final terms of the Definitive JV Documents including finalization of the amount of contribution by each party and auditing of each party's Chilled Business in the Territory, may constitute a discloseable transaction of the company under the Listing Rules. The terms of the Definitive JV Documents are subject to further negotiations and agreement between Mengniu and Danone. The Board will make appropriate announcement if and when necessary in accordance with the Listing Rules to keep the market informed of the development with regard to the Joint Venture. The Board wishes to emphasize that the Joint Venture arrangement and the entering into the Definitive JV Documents between Mengniu and Danone are subject to conditions. Shareholders of the company and/or investors should note that the Joint Venture contemplated under the Framework Agreement may or may not proceed.

Yakult Honsha Co. has terminated its strategic alliance with Danone. The two sides signed a new memorandum of understanding to maintain cooperation in some areas, such as research and development, and overseas businesses. Danone is expected to continue holding the Yakult stake. Yakult decided to end the strategic alliance because the firm judged it better to implement its growth strategy independently, without being bound by the alliance with Danone.

Danone announced consolidated sales results for the first quarter of 2013. For the quarter, the company's sales were EUR 5.34 billion.