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.
Go deeper with GlobalData
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUni-President is also considering an initial public offering of a Chinese unit in Hong Kong, Kao reportedly said, without providing further details.
