French food group Danone will sell its 20 percent stake in major Chinese dairy producer Bright Dairy and Food Co, the Chinese company said on Monday.
The stake will be sold to the parent of Bright Dairy and another Shanghai-based company, Bright Dairy said. It did not specify the selling price.
Danone and Bright Dairy will also end an arrangement under which Bright Dairy used and promoted the Danone trademark in China, the Chinese company said.
In exchange for ending the arrangement, Danone will pay 330 million yuan ($43.83 million) to Bright Dairy, it said.
Danone had no immediate comment to make.
France's biggest food company, which relies on China for 10 percent of its global sales, is already enmeshed in a legal dispute with Wahaha group, China's largest drinks company, over their joint venture in China and the use of the Wahaha brand.
The unusually public battle between Danone and Wahaha has put the spotlight on a trend of more intense and numerous disputes between Chinese and foreign companies tied up by joint ventures, as rapid economic growth and reforms erode their mutual dependence.