(Yicai Global) Jan. 11 -- Regulatory bodies in both China and France have approved Beijing Sanyuan Foods Co.'s [SHA: 600429] bid to purchase 100 percent equity in France's Brassica Holdings, which owns St Hubert, the dairy products firm. Sanyuan acts together with two Fosun subsidiaries over the deal, which comes at a time when China closely monitors its enterprises' capital outflow activities.
Sanyuan has teamed up with Fosun High Technology (Group) Co. and Shanghai Fosun Health Industry Holdings Co. to acquire 100 percent equity of Brassica TopCo's equity and 100 percent shares of PPN Management to indirectly own 99.93 percent equity of Brassica Holdings. The Chinese firms will also purchase 0.07 percent equity of Brassica Holdings held by FCPE St Hubert to complete the entire acquisition, Sanyuan said.
The transaction amount is expected to be about EUR625 million (USD747 million). In order to participate in the bidding project, Sanyuan will provide 49 percent of the capital, or nearly EUR306 million, excluding transaction costs.
Sanyuan participates in the acquisition of Brassica Holdings to acquire St Hubert, some media reports suggested. St Hubert's main products include healthy butter series, plant yogurt, beverages, desserts, and mixed fruit yogurt products.
Insides believe that Sanyuan uses its shareholder advantages to acquire the French high-quality dairy enterprise and introduce healthy organic products to enrich its product line. St Hubert positioned at the high-end, organic and healthy dairy products category has complementary synergies in product line with Sanyuan, they point out.