Nestle's proposed purchase of China's Xiamen Yinlu Foods Co has government approval after an anti-monopoly review, the Ministry of Commerce said Tuesday.

The world's largest food company announced in April that it planned to acquire a 60 percent stake in food and beverage producer Xiamen Yinlu.

Ministry spokesman Shen Danyang said the acquisition would not curb competition after its assessment of any impact on China's food and beverage industry.

"Meanwhile, we also suggest that both sides come up with sound solutions for the company's future development as well as the Chinese brand," said Shen.

The ministry has also started a review of Nestle's investment in Taiwan-based Hsu Fu Chi and Volkswagen AG's planned purchase of MAN SE.