China's Bright Food will take control of breakfast cereal maker Weetabix, in the biggest foreign acquisition by a Chinese food group. State-owned Bright Food has agreed to buy a 60% stake in a deal for £720m, which puts a value of £1.2 billion, including debt, on the private-equity owned company.
Bright Food now sees a major opportunity for Weetabix in China, where breakfast is a very important meal and there is a trend towards healthy eating.
Analysts expect more deals will now follow in Europe after Bright Food's earlier failed attempts to buy Britain's private-equity owned United Biscuits, the McVitie's and Hula Hoops group.