Danone has finalised the sale of its approximately 9.8% minority stake in Chinese dairy business China Mengniu Dairy for €1.6 billion.

Under the terms of the agreement, the majority of the proceeds will be returned to shareholders through a share buyback programme, with further details to be announced.

The French company announced back in March its intentions to convert and sell the stake, as part of an ongoing portfolio review process.

Earlier this year, Danone announced that Emmanuel Faber was stepping down as chairman and CEO, following recent pressure for governance changes from shareholders.

The settlement of the transaction will take place on 17 May.