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Corporate

Weetabix sold to US firm for Sh186 billion

A range of Weetabix products: Weetabix's total sales in 2016 as of January 2 dropped 1.6 per cent year-on-year, and profit fell 15 per cent to £84.6 million (around Sh11 billion). PHOTO | FILE
A range of Weetabix products: Weetabix's total sales in 2016 as of January 2 dropped 1.6 per cent year-on-year, and profit fell 15 per cent to £84.6 million (around Sh11 billion). PHOTO | FILE 

China's second-largest food company Bright Food Group has agreed to sell British-based breakfast cereal maker Weetabix to US company Post Holdings in a deal worth Sh186.2 billion ($1.8 billion), Bloomberg News said Tuesday.

State-owned Bright Food bought a 60 per cent stake in Weetabix for 1.2 billion pounds in 2012, part of an aggressive search for overseas assets as it sought to expand its global footprint.

At the time the deal was the largest overseas acquisition by a Chinese company in the food and beverage sector.

A Bright Food spokesman confirmed to Bloomberg that the Shanghai-based company would sell its stake to cereal manufacturer Post, with Baring Private Equity Asia holding the remaining 40 per cent.

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