Treasury Wine Estates (TWE), a luxury wine company in Australia, announced on Tuesday that it has entered into an agreement to acquire a 75 percent equity stake in Ningxia Stone & Moon Winery Co Ltd for 130 million yuan ($17.9 million).

Located in Qingtongxia, in the Ningxia Hui autonomous region, the acquisition strengthens TWE's commitment to the Chinese wine industry, said the company.

The move aims to enhance the company's presence in China and deepen connections with local consumers, said TWE.

The Stone & Moon brand produces several grape varieties, including cabernet sauvignon and marselan, with some grapes already being sourced by Penfolds for its China country of origin wine production.

Stone & Moon's asset base includes 43 hectares of luxury vineyards, a modern winery with room for future expansion, and a cellar door.

Tim Ford, CEO of Treasury Wine Estates, said: "This acquisition aligns with our vision to grow our luxury wine presence in key international markets while strengthening our commitment and investment in China's wine industry."

The Stone & Moon Winery is expected to play an important role in Penfolds multi-country of origin strategy, which features an unrivaled portfolio of globally sourced luxury wines from some renowned winemaking regions including Australia, the United States, France and most recently China.

The transaction is expected to be completed in the first half of 2025.