Bright Food, the Chinese state-owned group that last year took control of UK breakfast brand Weetabix, has extended its search for overseas assets by starting talks with Tnuva, Israel’s biggest food manufacturer and distributor, about a possible acquisition.
Bright Food said the talks were still at a “very preliminary” stage and it could not confirm a Chinese media report that the value of the deal could be up to Rmb10bn ($1.6bn). The company has made no secret of its desire to acquire overseas food brands.
It said on Monday that a deal with Israel’s largest dairy products company might make sense, both because “Israel is well known for its agriculture and the quality of its agricultural management” and because Beijing was pressuring domestic dairy companies – of which Bright Food is one of the largest – to improve quality.