Danone is working with JPMorgan Chase & Co. and BNP Paribas SA to arrange funding for its $10 billion purchase of WhiteWave Foods Co., the largest deal financing since the U.K.’s vote to leave the European Union roiled credit markets.
The Paris-based yogurt maker is likely to mandate additional banks it has a relationship with as early as next week to fund the deal, the people said, asking not to be identified as the information is private. Danone plans to split the financing for the transaction with a group of about eight to ten banks, two of the people said.
Danone is funding its biggest acquisition in almost a decade entirely with debt. The purchase of the Silk brand soy beverage maker will make Danone the global leader in fresh dairy and health-food brands including Horizon milk, Wallaby Organic yogurt and Earthbound Farm packaged salads as consumers increasingly shun processed foods perceived as unhealthy.
Representatives for JPMorgan and BNP declined to comment. A representative for Danone didn’t immediately return a call seeking comment.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.