Tingyi joins forces with Japanese formula maker

Tingyi (Cayman Islands) Holding Corp, the largest instant noodle producer in China, is registering a joint venture with Japanese diary producer Wakodo Co Ltd to sell baby formula on the Chinese market.

Tingyi, which makes instant noodles under the name Master Kong, said it will accrue 45 percent of the proposed company, which has registered capital of $5 million, according to a statement filed to the Hong Kong Exchanges and Clearing Ltd.

The joint venture with Wakodo passed antitrust investigations in July, according to the website of anti-monopoly bureau of the Ministry of Commerce.

Priced at 180 yuan ($29.5) to 230 yuan per can, Wakodo's infant and follow-up formula are sold in China via e-commerce channels such as Tmall, the country's largest business-to-consumer website.

Wakodo's parent company Asahi Group has invested 43.5 billion yen in Tingyi in 2010.

The move follows a recent pullback by Japanese food and dairy manufacturer Meiji Holdings, which said intense competition and rising costs for raw materials led to its decision.