Synlait Milk to buy 25% stake in New Hope Group unit

New Zealand-based dairy processing company Synlait Milk Ltd is expected to acquire 25 percent of a nutrition unit of China's largest agriculture company, New Hope Group, to gain access to the country's lucrative infant formula market.

"We are pleased to announce we have entered into a conditional agreement, subject to approval, for a 25 percent stake in Sichuan New Hope Nutritional Foods Co Ltd, the company responsible for the ownership, sale and distribution of the Akara-branded infant formula range in China," Synlait Milk Managing Director John Penno said in a news release.

"Through a small investment, the partnership will create an integrated supply chain for the manufacture, packaging, supply, distribution and sale of Akara to consumers in China, ensuring transparency from can to paddock."