(JNS.org) The Chinese government-owned Bright Food Group will buy 56 percent of the Israeli dairy firm Tnuva, the Jewish state’s largest food company.
According to the deal, Bright Food will make the purchase via British private equity house Apax Partners. Although the agreed-upon price is undisclosed, Tnuva is reportedly valued at 8.6 billion shekels, or $2.5 billion.
"China is still a niche market, but there's lots of room for growth. We're getting increasing interest from international clients who are interested in China," said Matthieu David-Experton, Shanghai-based CEO at Daxue Consulting, reported Israel Hayom.
The deal, one of the largest in the history of the Israeli market, will allow Bright Food access to Israel’s technologically advanced dairy production. Tnuva earned more 7.17 billion shekels, or $2.05 billion, in 2013.
"Israel is a country with highly developed agriculture and animal husbandry techniques. Tnuva, as Israel's largest food company, has a long history and various products and large market share," a Bright Food spokesman told Reuters.