Chinese instant noodle and beverage maker Tingyi will acquire a majority stake in the China business of PepsiCo, according to Bloomberg.
Quoting sources close to the situation, the data company said Tingyi could buy a 51% stake in PepsiCo’s China operations.
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Both Tingyi, which produces noodles and baked goods, and PepsiCo China declined to comment and the value of the potential transcation remains unknown.
Last year PepsiCo, which owns the Frito-Lay and Doritos brands, announced it would invest US$2.5bn in its food and beverage businesses in China over the next three years, spending the cash on new manufacturing facilities, research and development operations, expanded agricultural development and brand building.
In May Tingyi announced first-quarter profit rose 17.9% to $167.5m while sales rose some 30.3% over the quarter to reach $2.03bn.
