Infant formula maker Bubs Australia (ASX:BUB) confirms that it intends to form a joint venture with Beingmate Baby & Child Food Co., to distribute Bubs' products in China.
The companies have entered a non-binding memorandum of understanding with the intent of eventually forming a joint venture in Shanghai.
Beingmate is one of the largest Chinese owned enterprises in the infant and maternal nutrition industry and is listed on the Shenzhen Stock Exchange with a market cap of $1.2 billion.
Under the proposed Joint Venture, Bubs will supply infant formula and organic baby food products to Beingmate’s distribution network covering 30,000 Mother and Baby stores throughout China.
Shares in Bubs Australia (ASX:BUB) are trading 17.5 per cent higher at 70 cents