By Nate Wolf

The French dairy company Danone is no longer seeking to buy kefir maker Lifeway Foods, according to a filing with the Securities and Exchange Commission.

The two companies had entered into an agreement on Aug. 1, to allow Danone to conduct due diligence for a potential buyout. But Danone, which already owns about 23% of Lifeway shares, squashed investors' hopes for a swift sale.

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.

Lifeway stock plummeted 26% to $24.88 in premarket trading Thursday. Paris-listed shares of Danone were down 0.7%.

The French company 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.

Danone also believes the market has evolved since its initial offer in 2024 and wants to prioritize opportunities in its existing brands, the source added.

The SEC filing represents another twist in the yearslong power struggle within Lifeway's founding family, which owns more than 40% of shares in the Morton Grove, Ill.-based company. As Barron's detailed , co-founder Ludmila Smolyansky and her son Edward triggered a shareholder vote in July to oust the entire board. One of their opponents, Lifeway CEO Julie Smolyansky, is Ludmila's daughter and Edward's sister.

Danone agreed not to participate in the shareholder vote while exploring an acquisition. With a buyout off the table, however, Danone said it was still considering whether to vote for or against the proposal. Voting closes Sept. 30.

Barron's has reached out to both Lifeway and the Smolyanskys for comment.

Write to Nate Wolf at nate.wolf@barrons.com

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September 18, 2025 08:10 ET (12:10 GMT)

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