Nestlé has extended its reach in China after snapping up a 60% stake in Yinlu Foods Group.

Yinlu makes ready-to-drink peanut milk and canned rice porridge. The company already produces ready-to-drink Nescafé in China for the Swiss giant.

It notched up annual sales of around CHF750m (£512m) last year.

Nestlé chief executive Paul Bulcke said the deal “demonstrates our long-term investment in China and our commitment to further developing local brands”.

The sale remains subject to approval from Chinese regulators.

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