French yogurt, cookie and bottled water giant Groupe Danone will form a joint venture to make yogurt with China Mengniu Dairy, the country's biggest milk producer by volume, the companies said Monday.
China Mengniu, listed in Hong Kong, said it will hold a 51% stake in the joint venture, and Groupe Danone will own the remaining stake.
The companies didn't provide further financial details.
Yogurt-related products accounted for 6% of Mengniu Dairy's revenue for the six months ended June 30.
Mengniu Dairy's first-half revenue was 7.5 billion yuan, up 56% from 4.8 billion yuan in the year-earlier period.
Pierre Couderc, Danone's president, said in a statement that China Mengniu, based in Inner Mongolia, has an extensive distribution and sales network in China.
"Danone is the world's leading yogurt producer with powerful technological expertise in yogurt processing," he said. "The cooperation presents an excellent opportunity for both parties."