Bright Food in discussions to purchase Israel’s Tunva

Shanghai-based Bright Food (Group) Co Ltd is in talks with Israel's largest food producer Tunva for a potential acquisition, Pan Jianjun, a spokesman of Bright Food, confirmed to the Global Times Monday, a move seen as an effort to diversify its international expansion.

"We are still in a discussion for further understanding," Pan said, refusing to give the value of the deal.

Israel's haaretz.com reported Monday that Bright Food plans to buy Tnuva in a deal that could exceed 6.1 billion new Israeli Shekel ($1.29 billion).

If the deal goes through, it will be China's largest acquisition of an Israeli firm in terms of deal value, exceeding the sum of $220 million offered by Shanghai Fosun Pharmaceutical Co for a 95.20 percent stake in Israel's Alma Lasers.

Bright Food, China's second largest food manufacturer by revenue, targets a total revenue of 150 billion yuan ($24.51 billion) within the next three years, and expects its international sales to account for 25 percent of its revenue by 2015, up from 15 percent now, said a Reuters report in March.

The group is seeking to buy a sugar company abroad in potential markets such as Brazil, the report said, citing vice president Ge Junjie.

In November 2012, the group announced that it had completed the acquisition of Weetabix, a British breakfast cereal producer, by purchasing 60 percent of its shares for 680 million pounds ($1.09 billion). following the acquisition in 2011 of Australian biscuit and the purchase of a majority stake in New Zealand's Synlait Milk in 2010.

"We are only at the first stage of going global," said Pan.

"It is necessary for the company to go global, and the acquisition is a quick way to narrow the gap between different standards at home and abroad," said Yan Qiang, an industry analyst from Adfaith Management Consulting.