Thai food manufacturer Charoen Pokphand Foods (CPF) is to acquire China meat and ready-to-eat foods producer Chia Tai Food Enterprise in a deal worth THB483m (US$15.8m).
In a filing to the Thailand stock exchange, the company said the transaction will be made through CP China Investment, a wholly owned subsidiary of C.P. Pokphand Co (76% owned by CPF). Chia Tai Food is being sold by Chia Tai Food Investment (CTFI), itself a subsidiary of the Charoen Pokphand Group (CPG), a major shareholder of CPF.
The board of directors of CPF said the deal will allow the company to engage in the manufacture and distribution of processed food and ready meals in China.
"It will also enhance the opportunities of CPP group to become a leader of food business in the PRC. The company viewed that the processed food and ready meal market in the PRC have high growth potential," the company said.
CPF has two core business units: the production of animal feed and shrimp and fishes. It also has operations in the UK, where it produces Thai food for the supermarkets.
