Business
16:42, 20-Aug-2017
China's New Hope frontrunner to launch takeover bid for Moy Park
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Chinese agribusiness group New Hope is the frontrunner to launch a 1.3-billion-US-dollar takeover bid of Northern Irish poultry giant Moy Park, industry sources have said.
The firm was put up on a divestment program in June by its owners that involved in a political corruption scandal in Brazil.
JBS bought the business in 2015 for 1.5 billion US dollars making it Northern Ireland's biggest ever food deal, but is now trying to offload assets to cut debt and reduce leverage.
The sale comes just weeks after JBS's controlling shareholder, J&F Investimentos, agreed to pay the world's largest fine of 3.3 billion US dollars as part of a plea bargain for bribing politicians in the scandal.
New Hope Group's president Liu Yonghao speaks at a conference in Beijing on March 3, 2017. /VCG Photo
New Hope Group's president Liu Yonghao speaks at a conference in Beijing on March 3, 2017. /VCG Photo
New Hope was founded in1982 by Liu Yonghao and has become one of the largest private conglomerates in China, with around 70,000 employees in over 30 countries.
Moy Park is one of Europe's largest poultry producers with over 9,000 staff in Northern Ireland.
Other bidders include Chinese group WH, which holds the world's largest pork producer Smithfield Foods, as well as US-based Tyson Foods, Brazilian food company BRF, and private equity firm CapVest, reported The Telegraph.
Last week, the Chinese government announced it would restrict "irrational" overseas acquisitions in industries like property, film, entertainment, sports and hotels.
However, it is unlikely to reject the takeover as New Hope could argue that the deal would contribute to China's self-sufficiency in agriculture, according to bankers close to the issue.