(Yicai Global) Dec. 12 -- Poultry breeder Henan Huaying Agricultural Development Co. [SHE:002321] plans to purchase a duck farming company in eastern China's Shandong province as it looks to bolster its market share in China and overseas.
Huaying Agricultural penned a deal with Weifang Legang Food Co., under which the former will set up a new firm to take over the latter's duck farming assets, the listed company said in a statement yesterday evening.
Exported duck meat is one of Legang Food's strongest business areas. The World Trade Organization ruled in March that the European Union's 2006 and 2009 decisions to amend tariff quotas on Chinese duck violated rules, which will boost export earnings for Huaying Agricultural, it said.
Legang Food is a pork and duck meat producer and the only Chinese firm that exports these products to Canada. It also serves the EU, South Korea, Japan, Singapore and Hong Kong, and its products have passed US government inspections. The company has also developed military food products with and receives regular orders from clients in the defense sector, it added.