According Reuters : « China’s Bright Food Group is considering a bid for Australia’s Treasury Wine Estates Ltd , Bloomberg News reported, while the Australian company on Saturday declined to comment on the matter. »
The privately held, Shanghai-based food and diary company has had internal talks about making a bid, Bloomberg News reported on Friday, citing two people familiar with the matter. Treasury Wine Estates, valued at A$2.18 billion ($2.35 billion), was spun off by Foster’s Group in May to its shareholders after the brewer failed with an expansion into wine that resulted in nearly A$3 billion in writedowns.
Following the split up both companies were seen as potential takeover targets. Foster’s has already rejected a A$9.5 billion takeover offer.
But the strong Australian dollar and tough conditions in the wine market are seen as deterrents to potential bidders for Treasury Wine Estates, the world’s second largest wine company behind Constellation Brands .
Treasury owns with vineyards from the Hunter Valley near Sydney to the Napa Valley in California making Penfolds, Rosemount, Wolf Blass and Beringer wines.
Foster’s rejected a takeover approach for the wine business last year worth up to A$2.5 billion from private equity firm Cerberus Capital Management .
Bright Food said in May that it would seek to buy overseas assets in its core businesses, including wine, sugar and dairy