French company CEVA entered into a definitive agreement with Sichuan Hengtong to acquire a  majority stake in its animal health subsidiary in China.

The signing, which was done in CEVA's headquarters in Libourne, was witnessed by officials from the Chinese Embassy in Paris and the French Ministry of Foreign Trade.

In the event the transaction is completed, CEVA will now increase its presence in China, particularly in the area of pharmaceuticals for animal health.

James Z. Li, CEO of E.J. McKay, which served as exclusive financial advisor of CEVA, said the agreement "will not only strengthen CEVA's market-leading position worldwide, but also create a positive impact on the veterinary health industry and food security in China."

CEVA is included among the top 10 leaders in pharmacology and biology for animal, poultry, swine and livestock sectors. CEVA today has 21 production sites and 13 R&D sites all over the world, distributing products to 42 countries.