Uni-President Enterprises Corp, Taiwan’s largest processed food manufacturer, has indicated that it is in talks with four Chinese food companies regarding possible acquisitions.
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According to an Associated Press report, Uni-President chairman CY Kao told reporters after the company’s AGM that Uni-President was interested in acquiring large Chinese beverage and instant noodle manufacturers. Kao did not reveal who the company was negotiating with.
Because Uni-President’s level of investment in China has reached the upper limit allowed by the Taiwanese Government, the acquisitions will be funded through Chinese units or affiliates, which reported a combined profit of US$30.6m last year, Kao said.
As Uni-President’s total investment in rival China has reached the limit allowed by Taiwan’s government, the company will fund future acquisitions there with cash from its Chinese units or affiliates, which had a combined net profit of more than NT$1 billion (US$30.6m) last year, Kao said.
Kao said Uni-President is also interested in working with foreign companies to foster growth in China’s rapidly expanding market. In February, the company formed a strategic alliance with Kraft Foods, helping Kraft sell more of its products in China across several distribution channels.
Uni-President is also considering an initial public offering of a Chinese unit in Hong Kong, Kao reportedly said, without providing further details.
