Yashili has sealed a deal worth some 150 million euro or $159 million with Danone to buy all of the French food giant's infant formula unit Dumex China.
Danone has been struggling to revive its Dumex unit since 2013 when food scares hit its reputation in China.
In 2013, Dumex saw its net sales plummet by over 70 percent from the year before.
Its previous supplier Fonterra launched a wide-scale recall in the same year due to suspected contaminated whey products, though the contamination was later proved to be unfounded.
