French food company Danone has acquired a stake in Yashili New Zealand Dairy, a dairy unit of Chinese infant formula and soymilk products company Yashili International Holdings.

Danone paid 318 million New Zealand dollar ($218.5 million) for a 49 percent stake in Yashili.

Yashili will use the net proceeds from the sale for brand development and the divestment will strengthen its strategic partnership with Danone.

Following the completion of the deal, Yashili will keep 51 percent of the shares.