Xinhua News Agency announced the agreement reached between the Chinese company Mengniu and Coca-Cola to create a joint venture. It will be called KeNiuLe Dairy. The authorized capital is estimated at $69 million.
Mengniu and Coca-Cola said in a statement that the new venture will benefit from both companies' dairy achievements. We are talking about the results of research, technological developments, as well as distribution channels for finished products. Over time, a new brand will appear in the domestic market of China. The joint venture will be engaged in the production and sale of chilled milk products.
Mengniu shares are listed on the Hong Kong Stock Exchange. Since the beginning of this year, the capitalization of the Chinese manufacturer has increased by 30%. At the same time, the Hang Seng index, which is one of the largest in Asia, showed growth over this period by only 7.2%.