China’s Bright Dairy & Food Co. is to take a controlling stake in local peer Qinghai Xiaoxiniu Biological Dairy Industry Co. via two transactions totalling CNY620m (US$96.9m).
The publicly-listed company is paying a group of sellers CNY130m for a 17.5% stake in Qinghai Xiaoxiniu.
Separately, Bright Dairy & Food Co. has agreed to buy a 42.5% stake from Huzhou Foxit Business Partnership and Huzhou Chenfeng Business Partnership for approximately CNY490m.
After the completion of both acquisitions, Bright Dairy & Food will hold 60% of Qinghai Xiaoxiniu Biological and the remaining 40% will continue to held by Wang Weisheng.
The acquisition still needs to obtain an anti-monopoly licence from China’s State Administration for Market Regulation.
Shanghai-based Bright Dairy & Food is involved in the development, production and distribution of dairy products. It offers products, including yogurt, butter, milk and cheese, under the Bright brand name.
Qinghai Xiaoxiniu Biological Dairy Co. has a product range including Tolunbao pure milk, Qinghai old yogurt and Treasure of Highland Barley yogurts. It is based in the province of Qinghai.
Bright Dairy & Food is majority-owned by Bright Food (Group) Co. Ltd, a state-owned Enterprise. Among Bright Food’s assets is a majority stake in Italian olive-oil maker Salov, the owner of the Filippo Berio brand.