Danone filed a report with U.S. Securities and Exchange Commission stating it will withdraw its proposal to purchase Lifeway Foods, according to a Barron's report. 

"In the SEC filing, Danone said it was exploring other options, which could include offloading all or part of its stake in Lifeway or retaining its full investment. Lifeway last year rejected two all-cash offers from Danone to acquire the company, for $25 and $27 a share, respectively," the financial news publication reported.

Danone currently owns some 23% of Lifeway Foods shares. As Dairy Foods reported last year, Lifeway issued a 2024 statement stating, "The board determined that Danone's $27 per share proposal substantially undervalues the Company. The board is not however opposed to the sale of the company at any price."

In response to news of Danone bid withdrawal, Lifeway issued the following statement on Sept. 18:

"We remain firmly committed to driving value for Lifeway shareholders by executing our strategic plan and continuing to explore value enhancing opportunities.

As part of the exploration of all opportunities to maximize shareholder value, the Board formed a Strategic Review Committee, comprised solely of independent directors, to oversee the process, and the Company engaged extensively with Danone. With the distraction of Danone's unsolicited proposal now behind us, we will continue to focus on executing our growth strategy to create value for all our shareholders, employees, partners and customers.

The company is delivering results, with record-breaking sales in both Q1 and Q2 2025 and continued momentum into Q3. Recent performance highlights include:

• Q2 2025 hit new highs: Lifeway achieved a record $53.9 million in net sales, an 18% year-over-year increase on a comparable basis.
• Category leadership continued into Q3: In the first two months of Q3 (through August 31), Lifeway recorded $39.1 million in unaudited net sales, a 20% year-over-year increase.
• Track record of performance: Lifeway has delivered 22 consecutive quarters of growth, cementing its reputation as a retail dairy innovator."

According to Barron's, Danone opted against another bid for Lifeway "because it doesn’t believe the two businesses would be able to work together effectively, according to a source familiar with the discussions. Several weeks of discussions revealed the pair wouldn’t be a strong 'cultural fit,' they said."