Paris-based Danone SA reached a deal to buy WhiteWave Foods for $10.4 billion, a merger “that would hand it a slice of the fast-growing market for organic food and more than double its North American revenue,” said the Wall Street Journal. Organic food is 5 percent of the U.S. food sales, with large annual increases.
The Danone-WhiteWave deal is the first large merger for European companies since the UK vote to leave the EU. The Journal said it also is a sign that European firms are shifting their attention to North America after years of focusing on emerging markets. The consumer group Food and Water Watch said the Federal Trade Commission should block the deal. “The biggest food companies are snapping up organic brands that inspire more consumer confidence than ones marketed by conventional food manufacturer,” it said, limiiting consumer choice and buyers for farm goods.
“WhiteWave, based in Denver, has been one of the fastest-growing companies in the sector in recent years, lifted by rising demand for healthy and organic foods that has transformed the food industry in the United States,” said the Journal. WhiteWave’s products include Horizon Organic milk and Earthbound Farm packaged salads.