Tyson Foods, the US-based meat giant, confirmed today (17 July) that it is undertaking due diligence on Chinese poultry group Shandong Xinchang Group with a view to buying a stake in the business.
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The company, which set up a poultry joint venture in China in February, is looking to expand its business in the country in a bid to tap into growing meat consumption.
Tyson has already signed a preliminary agreement with Xinchang to buy a 60% stake in the company and is now going through its books before finalising the deal.
The Chinese government would also need to ratify the transaction before the deal can be cleared.
“Xinchang Group is one of China’s leading poultry producers with sales of US$289m,” a Tyson spokesman told just-food. “If completed, the deal would give Tyson Foods 60% ownership in a vertically-integrated poultry operation consisting of Xinchang’s existing assets and a new complex currently under construction on the east coast of Shandong Province.”
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By GlobalDataLast month, Tyson stepped up its presence in India with the establishment of a local venture, Godrej Tyson Foods.
In May, Tyson CEO Dick Bond said the company would look to secure two acquisitions in Brazil by the end of its financial year, which runs until September.
