Bright Food on acquisition spree

Chinese company Bright Food Group, which owns British cereal maker Weetabix Ltd, said it is seeking acquisitions and can pay as much as 10 billion yuan (US$1.06 billion) for a target.

Bright Food said it is open to buying domestic and overseas companies, but it is not interested in deals that are “too small”. It also prefers to work on one acquisition at a time, said chairman Lv Yongjie.

He also disclosed that the company is preparing an initial public offering for its Australian unit Manassen Foods.

Bright Food has joined Chinese companies including WH Group, Fosun International Ltd and Alibaba Group Holding Ltd in pursuing assets overseas.

The Shanghai-based company, which has interests that span food and beverages, farming and retailing, bought Tnuva Food Industries, Israel’s largest food manufacturer and distributor, last month following Weetabix, as rising incomes spur demand for consumer goods.

Todd Yang, Shenzhen-based analyst at Guosen Securities Co., said Chinese food firms seek overseas deals to acquire product research capabilities and better resources. “Imported foods are growing in popularity in China and they may also be seeking foreign food brands to address the trend.”