Chinese conglomerate in negotiations to buy Israeli dairy co-op Tnuva

( Negotiations for control of Israeli dairy cooperative Tnuva are moving forward, as the company’s controlling shareholders—British investment firm Apax and Mivtach Shamir Food Industries Ltd.—consider selling Apax’s share in the company to China’s Bright Food Group.

According to sources close to the negotiations, if the deal goes forward it would be for some 8.5 billion to 9.5 billion shekels ($2.4 billion to $2.7 billion). The emerging deal is said to be serious, but contrary to recent rumors the Chinese company is not planning to send representatives to Israel in the near future, according to Israel Hayom.

Bright Food— a Chinese government-owned conglomerate that deals in acquiring food companies—appointed representatives for the negotiations, among them accountant Erez Sofer, attorney Adir Waldman to represent the Chinese company in Israel, and attorney Reuven Behar. The team was appointed to thoroughly examine the deal.

Currently, Apax and Mivtach Shamir control 76.7 percent of Tnuva’s shares, with the remainder still controlled by kibbutzim and agricultural communities. The majority share, 56.5 percent, belongs to Apax.

Posted on February 11, 2014 .