China’s Bright Food Group has signed a preliminary agreement to buy a controlling stake in Tnuva, Israel’s largest food company, giving the food and beverage maker access to Israel’s new dairy processing technology.
Shanghai-based Bright Food said on Thursday it will buy 56 percent of Tnuva from private equity fund Apax, Caixin financial news website reported. It expects to secure all necessary approvals before the end of this year.
The company did not disclose the value of the transaction, but Israeli media estimated it at US$2.5 billion.
Bright Food spokesman Pan Jianjun said it was a win-win deal for both companies in terms of product innovation, research and development, and husbandry technology.
The Chinese company has stepped up acquisitions globally in the past few years with deals that included Australia’s Manassen Foods and British breakfast cereal maker Weetabix.
In 2010, the state-owned company bought New Zealand’s Synlait Milk for 382 million yuan (US$61 million).
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