China’s Bright Food Group Co. has confirmed that it is in talks to buy Tnuva Food Industries Ltd..
A Bright Food spokesman said that Tnuva had only recently been approached and that it is too early to say that the two companies are negotiating. The spokesman declined to disclose further details, while Tnuva’s spokesman was not available for comment.
Bright Food has over 3,300 retail stores across China and is known in the country for its dairy and White Rabbit candy. It is on a global buying spree and has bought majority holdings in Australia’s Manassen Foods and UK cereal maker Weetabix.
Tnuva is Israel's largest food company and according to controlling shareholder Apax Partners LLP, the company holds 14% of Israel's food retail shelf space. Apax and investment partner Mivtach Shamir Food Industries Ltd. (TASE:SHAM) acquired a 77% stake in Tnuva for more than $1 billion in 2008.
Bright Food is among a growing number of Chinese companies buying up foreign companies for more market share or technological know-how. Sources say that a Bright Food acquisition of Tnuva would be in line with its global strategy. Bright Food set a target in 2010 of doubling revenue by 2015 to about $14 billion.
Last week Tnuva reported NIS 1.83 billion revenue for the second quarter up 4.5% from NIS 1.75 billion in the corresponding quarter of 2012. Net profit was NIS 127 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2013
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