China-based Bright Food Group, parent company of Bright Dairy, is reportedly contacting Israel's Tunva with aims to acquire this Israeli food manufacturer for about CNY10 billion.
According to reports in Chinese local media, Tunva is a Israeli food company that focuses on dairy products. Apax Partners, a British private equity fund, owns a 56% stake in the company. At present, Bright Food is reportedly negotiating with Apax Partners. If a takeover is successful, it will become the largest overseas acquisition by a Chinese diary company.
Pan Jianjun, a spokesperson from Bright Food, said during an interview that the two parties have not reached an agreement. The intention to acquire Tunva is a part of Bright Food's international strategy and the company will seek more opportunities to purchase overseas projects in the future.
Pan also revealed that Bright Food will not limit its overseas expansion in a specific region. Any project that is in line with the company's strategy and core businesses will be taken into consideration.
Over recent years, Bright Food Group has been firmly implementing its internationalization strategy. Starting from the acquisition of New Zealand's Synlait Milk in 2010, the company invested in many food companies in Australia, Britain, and France, covering dairy, cereals and wine sectors.
Ge Junjie, vice president of Bright Food Group previously said that the company plans to raise the ratio of its international businesses from the current 15% to 25% in the next three years.