by Staff Writers
Shanghai (AFP) May 22, 2014
China's state-owned Bright Food will take a majority stake in Israel's biggest food producer Tnuva, it said Thursday in the latest step of an overseas buying spree.
Bright Food, which controls British cereals firm Weetabix, has signed a preliminary agreement with London-based private equity firm Apax Partners to acquire a 56 percent stake in Tnuva, the Chinese firm said in a statement.
Bright Food said the agreement was reached in Tel Aviv early Thursday. It did not provide any financial details but Israeli media had said the deal would value Tnuva at 8.6 billion shekels ($2.5 billion).
Bright Food could not be reached by AFP for confirmation of the price but said in the statement: "The cooperation between Bright Food and Tnuva will allow both parties to exchange their superior resources and achieve win-win results in terms of cooperation."
Founded by collective farmers in 1926 -- before the state of Israel -- Tnuva is now the country's largest food manufacturer, supplying mainly dairy products, frozen vegetables, as well as eggs and meat.
It recorded a net profit of 520 million shekels in 2013, down 56 percent year-on-year due to property sales in 2012.
Shanghai-based Bright Food has been aggressively searching for overseas assets in recent years to expand its global footprint.
The food giant paid $1.94 billion in 2012 for a 60 percent stake in Weetabix and acquired a 75 percent in Australia's Manassen Foods in 2011, in a deal that valued the target firm at more than $520 million.
Shares of Bright Dairy & Food, the listed unit of Bright Food, closed up 2.29 percent at 18.29 yuan ($2.93) after the announcement.
Farming Today - Suppliers and Technology
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.|