Emerging market majors snap up Western businesses
The increase in merger and acquisition activity from companies in the emerging markets on Western food manufacturers has risen in the last year with a number of deals being signed in 2012.
Mexican food and drink group Arca Continental has bolstered its snacks business with two acquisitions, including the purchase of US firm Wise Foods.
Ambitious Bright Food, the Chinese state-backed food group, missed out on previous Western targets like United Biscuits and Yoplait but it has planted a flag in Europe with the acquisition of a majority stake in UK cereal manufacturer Weetabix. The deal could give Bright Food some Western expertise to apply to its domestic business but, as Dean Best reports, its faces a challenge in building the brand in China, where it remains early days for breakfast cereal.
The rise of the emerging markets of the East has led some M&A watchers to believe companies in markets like India and China could be more regular buyers of businesses in the West.
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