The new joint venture will be 80% owned by Mead Johnson which will invest ARS850m ($196m) to gain the share, while the rest will be held by SanCor.
The joint venture will develop, produce and market paediatric nutritional products under the SanCor Bebé brand, which holds the leading position in the Argentine market, for South America's Southern Cone, including Argentina, Chile, Paraguay, Uruguay and Bolivia.
Mead Johnson will provide clinical research, proprietary formulas and product innovation excellence for the joint venture, while SanCor will offer its local market knowledge and high-quality manufacturing capabilities.
SanCor board of administration chairman Oscar Carreras said that with this transaction, Mead Johnson strengthens its presence and growth potential in South America, while SanCor will be able to leverage its manufacturing base and continue exploration of business opportunities in other promising categories
"More importantly, parents win with greater access to best-in-class products they can feed their children with confidence," Carreras added.
The joint venture will manufacture its products at SanCor's existing facilities in Argentina.
