Instant noodle and beverage producer Tingyi (Cayman Islands) Holding is in talks to acquire PepsiCo’s bottling operations in China, according to sources.

The agreement will give Tingyi bottling and distribution rights for PepsiCo beverage products in China, and PepsiCo will take a minority stake in Tingyi’s beverage business with an option to later raise the stake.

In May 2010, PepsiCo announced plans to invest $2.5bn in the food and beverage markets in China over a three-year period, including new manufacturing facilities, on top of the $1bn invested since 2008.

New York-headquartered PepsiCo has more than 20 majority-owned bottling joint ventures across China.