Bright Food Group Co said it could buy a stake in Tnuva Food Industries Ltd. Bright Food is a Chinese dairy and consumer products firm. Tnuva Food Industries, meanwhile, is the largest food maker and distributor in Israel.
Bright Food's spokesman Pan Jianjun told Bloomberg by phone that the talks with Tnuva are in the preliminary stage. He did not specify how large their planned acquisition would be.
The Shanghai government-backed Bright Food Group had been looking to expand its operations abroad. Last year, it purchased a 60% stake in Weetabix Ltd from Lion Capital, a private equity firm. Weetabix is a Britain-based cereal maker. The move to partner with foreign firms came in the wake of sagging consumer confidence in locally-made brands that had been plagued with safety scandals.
Guosen Securities Co Analyst Todd Yang told Bloomberg by phone that the deal would help Bright Food's milk manufacturing segment. "Bright Food needs to speed up on overseas acquisitions to improve the sourcing of raw milk as well as the research and development capacity," he said.
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