Bright Food stays on global acquisition push
Undaunted by the yuan’s devaluation, Bright Food plans to step up its acquisitions of overseas food companies as part of efforts to become a platform company
Shanghai-based Bright Food Group, the mainland’s second-largest food conglomerate, is stepping up its go-global efforts even as the depreciating yuan raises the cost of overseas acquisitions.
Company spokesman Pan Jianjun told the South China Morning Post Wednesday its acquisition focus would remain on the United States, Europe, Australia and New Zealand, as well as Southeast Asia.
“The group is determined to internationalise the businesses and securitise assets to pursue further growth,” Pan said. “We hope to take solid steps in an orderly pace toward internationalising our businesses.”
A weakening Chinese yuan is disrupting the business model of mainland food companies.
For example, China’s dairy makers, were pinched as the yuan devalued by around 10 per cent from August last year, boosting costs for imported milk products and eroding profits.
On the mainland about 25 per cent of dairy products are imported from abroad.
