Danone agrees to sell its Chilean subsidiary to Watt’s

French firm Danone has signed an agreement to sell its subsidiary in Chile to local food producer Watt's.

The agreement involves the transfer of all shares of Danone Chile.

Further financial details of the deal have not been revealed by both companies. However, the local news reported that the transaction will be valued at approximately $24m.

According to the agreement, Watt’s will acquire all the assets of Danone Chile, the Calan brand, and the production plant in Chillan.

Watt’s CEO Rodolfo Véliz Möller said: “We are pleased to acquire this company and for achieving this long-term agreement with Danone, which will allow us to continue the work done so far by them in Chile.

“Products and brands Danone are world leaders in quality, innovation and prestige, and for Watt's, is a source of pride to be associated with Danone, a leading global food market company and an ideal company to support Watt's growth strategy in the Chilean dairy market.”

Both the companies have also agreed on the terms for the use of Activia, Danone and Danone Light brands in Chile.

The transaction is expected to close in the coming months and is subject to certain customary conditions.

Watt's and Danone will continue to develop brands in the country, combining their capabilities and the strong local presence.