Yakult and Danone in talks in Japan

Reuters reports that Japanese drink maker Yakult Honsha has confirmed it has agreed with Danone SA to continue talks on the possibility of the French food company to take a bigger stake in Yakult.

However, these talks centre on the premise that Yakult will retain its independence, a Yakult executive told reporters.

Danone first took a stake in Yakult in 2000, and the two firms entered into a strategic agreement in 2004. Under the terms of that deal, Danone could not lift its stake to more than 20% for five years.

The agreement was revised in 2007 and the provision was extended for an additional three years, until it expired earlier this year.