US' Carlyle group in China milk powder deal

US investment firm Carlyle Group on Sunday (September 20) unveiled a substantial strategic investment in one of China's top milk-powder producers, underscoring rising foreign involvement in a sector still reeling from recent health scandals.

The US buyout fund has taken a 17.3 percent stake in Yashili, a family-owned company which is among the three top national producers of infant milk formula.

Further financial details were not disclosed. The investment was made through Carlyle Asia Partners, a fund which typically spends US$100 million to US$200 million on individual deals.