Singaporean food company Want Want Holdings Ltd said it will pay 30 million renminbi (US$3.6m) to acquire a 75.6% stake in a Chinese food producer.

Want Want has formed Beijing Mingwant Foods Ltd in cooperation with Beijing Huachen Food Company. The company has a registered capital of 40 million renminbi. Beijing Huachen will pay 10 million renminbi for its 24.4% stake in the new company.

Beijing Mingwant Foods produces and distributes foodstuffs including yoghurt products, milk, soya milk, instant porridge, tea and other snack foods, Singapore’s Business Times reported.

The transaction does not come without strings, however. If ‘certain profit targets’ are not met by Beijing Huachen, the moneys funnelled into the company would be adjusted downwards.