Zhengzhou Sanquan Foods Co Ltd, one of China’s largest producers of fast-frozen food, said it has reached an exclusive acquisition framework agreement with H.J. Heinz Co to acquire the four Long Fong food companies owned directly or indirectly by Heinz.
The statement didn’t disclose the specific acquisition price, and said the two companies will have the target companies audited and evaluated by authorities. The four Long Fong food companies are based in Shanghai, Zhejiang, Tianjin and Chengdu.
Sanquan Foods Co had a 10.9% share of the fast-frozen food retail market in China in 2012, Longfong Food took 3.3%, and Synear Food Holdings Ltd and Wanchai Ferry had 5.7% and 3.5% respectively, according to a China Business News report. Sanquan Foods Co’s stocks closed at 29.33 yuan [US$4.70] on Monday, up almost 3% compared to the previous day’s trading.
Source: China Daily Feb 2013