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Tuesday, January 14, 2014

China's Bright Food to purchase Australian diary firm Mundella, (TSE: SAP.TO)

China's Bright Food (Group) Co Ltd said it had agreed to purchase Australian dairy company Mundella Foods through its Australian subsidiary, expanding the state-owned conglomerate's overseas reach and boosting its exposure to the growing dairy market. Manassen Foods, the Australian company that Bright Food bought in 2011, has signed an agreement to buy Western Australia's Mundella, Bright Food spokesman Pan Jianjun said on Tuesday.The terms of the deal have been decided but the transaction value will be finalised once Mundella's 2013 financial results are available, Pan said.Interest in Australian dairy assets has grown due to surging sales in Asia of both traditional products such as milk and cheese and for high-tech nutraceuticals and probiotics.A takeover battle for the country's oldest dairy producer, Warrnambool Cheese and Butter Factory Holdings Co, has been one of the most hotly contested in recent months, as Canada's Saputo Inc attempts to outbid local dairy companies Murray Goulburn Co-operative Co Ltd and Bega Cheese Ltd.

Saputo Inc. produces, markets and distributes an array of dairy products in Canada, the United States, Argentina and Europe, as well as bakery products in Canada. Shares of SAP traded higher by 0.68% or $0.34/share to $50.19. In the past year, the shares have traded as low as $46.01 and as high as $54.62. On average, 281585 shares of SAP.TO exchange hands on a given day and today's volume is recorded at 565059.