PepsiCo China has announced a long-awaited alliance with Tingyi Holding Co, who is more widely recognized by its Chinese name 'Master Kong', as the marriage has been finally approved by the Ministry of Commerce, Daily Business reported.

According to the agreement, PepsiCo will swap its entire bottling operation in China for a 5-percent stake in Tingyi-Asahi Beverages Holding Co, a subsidiary of Tingyi. The strategic move is expected to fuel competition in the soft drink market as its peak season impends, an insider said.