Beijing Dabeinong Technology will take full ownership of 3 companies and majority stake in the other 5
Chinese hog breeder Jiangxi Zhengbang Technology will sell eight of its animal feed units to Beijing Dabeinong Technology, according to a Reuters report.
The deal is reportedly worth between CNY2 billion (US$316.5 million) and CNY2.5 billion.
The planned sale includes full ownership of Deyang Zhengbang, Danling Zhengbang and Chongqing Guanglian, as well as majority stakes in five Zhengbang subsidiaries based in the southwestern provinces of Yunnan and Guizhou.
Dabeinong said it hoped the deal would strengthen its competitiveness in the animal feed industry, as it targets a 10% share of the feed market in the near term and 20% share in the mid- to long term.
The eight companies had combined net profits of more than CNY200 million in the first three quarters of 2021, Reuters said.
According to Feed Strategy’s Top Feed Companies database, Zhengbang is one of China’s top 10 feed enterprises. The diversified agribusiness controls more than 700 branch subsidiaries active in animal husbandry, crop planting, agricultural materials, logistics and related investments. In 2020, it produced nearly 4.1 million metric tons of feed.
Dabeinong is one of China’s top feed producers and also raises pig and sells seed.