According to reports, a unit of China’s state-owned Bright Food Group Co Ltd will take a 50% in New Zealand’s biggest meat co-operative for $197m, as China looks to import more of the country’s agricultural products.
Sheep and beef exporter Silver Fern Farms will sell a 50% stake to food processor Shanghai Maling Aquarius, a Bright subsidiary.
“The long term prospect for New Zealand agriculture including meat is positive, so we’re not surprised to see offshore interest in domestic agribusinesses,” said ASB rural economist Nathan Penny.
Shanghai Maling said the purchase would give it access to the New Zealand company’s high quality produce and help it almost triple its revenues versus 2014 to as much $4.71bn.
“Once this deal goes through, our company will quickly become China’s biggest consolidated lamb and beef industrial group,” Maling said in a statement to the Shanghai exchange.
New Zealand is the world’s biggest sheepmeat exporter and fifth-largest overseas supplier of beef, sending roughly one-third of its exports by value to China in the year to June.
Bright has made several acquisitions around the world in recent years, including British cereal maker Weetabix and Australian dairy company Mundella Foods.
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