French Danone buys majority stake in local water brand

ISTANBUL - Hürriyet

Danone buys a 50.1 percent stake in Sırma.

French bottled water and yogurt company Danone announced on May 6 that it has signed to buy a 50.1 percent stake in Turkish bottled water brand Sırma, for an undisclosed amount.

Danone, seeking to bolster its strength in the Turkish market, became the majority stakeholder of the company.

Danone is already present in Turkey’s water market with its Hayat brand, and will benefit from the two companies’ complementarity in terms of brand positioning, geographical presence and distribution channels, the company said in a statement.

Sirma, which reported annual sales of 100 million euros ($131 million) last year, is active in plain and flavored bottled waters and in home and office delivery, Danone also said.

It added that the transaction, which is expected to be completed before the end of 2013, is still subject to the approval of the competent authorities.

Danone had been complaining about the eurozone crisis which had led to a drop in consumption in southern European countries.