Linklaters and Sullivan & Cromwell are advising on China Mengniu Dairy's acquisition of Yashili International for $1.7bn (£1.1bn).

The deal, announced this week, is seen as an attempt to consolidate China's milk production industry which was hit hard by the 2008 Chinese milk scandal – a food safety incident which saw 54,000 babies hospitalised.

China Mengniu has offered to buy a 52% stake in Hong Kong-listed Yashili currently held by Zhang International Investments, and the 24% stake owned by the Carlyle Group.

By buying the majority shares in its smaller rival, Mengniu – China's top milk producer – will boost its market share and strengthen its position as a top provider of baby-formula and other milk-products.

Sullivan represented China Mengniu on the transaction, fielding a team led by Hong Kong corporate partner Kay Ian Ng and Beijing-based Gwen Wong. The US firm also advised the company when arranging its $1.7bn loan facility, with a group of associates in Hong Kong overseen by Beijing M&A partner Garth Bray.

Linklaters acted for Yashili with a group led by Hong Kong M&A partner Teresa Ma. The magic circle firm also advised Zhang International and the Carlyle Group, with Hong Kong private equity partners Chris Kelly, Betty Yap and Judie Ng Shortell heading up the firm's efforts.

Mengniu is China's biggest dairy company, manufacturing a range of products including baby formula and ice cream.

Other recent efforts to boost its global profile since the Chinese milk scandal include increasing its stake in milk producer China Modern Dairy from 1% to 28%, and agreeing a joint venture arrangement with French food company Danone – both in May this year.