International Online News (Reporter Dong Weijia): Recently, sources said that China's largest grain, oil and food company COFCO Group Co., Ltd. (hereinafter referred to as "COFCO") is conducting secret negotiations with Jinluo Group on the acquisition. Based on Jinluo's current total assets, once the acquisition is successful, the amount involved may exceed tens of billions.
At present, the meat products industry is mainly composed of Shuanghui, Yurun, and Dazhong Foods, the parent company of Jinluo Foods. Once COFCO acquires Jinluo successfully, it may trigger a new round of reshuffle in the meat industry.
According to sources, the contact between COFCO and Jinluo can be traced back to the beginning of December 2013. As for the acquisition, the two parties are still at a very early stage and are in the process of negotiating. International online reporters contacted COFCO and Jinluo Group, but neither received a definite response. The reporter of this website learned from the relevant person in charge of the public relations department of Jinluo Group that the company has not yet obtained accurate information about the acquisition, and the specific situation is still unclear.
Recently, COFCO, which has been continuously expanding its "territory", is committed to building a grain, oil and food enterprise with a full industrial chain, and the meat industrial chain is an important part of it. This time, COFCO "covets" Jinluo Group, the second-ranked meat product enterprise in China. According to industry insiders, this will be an important step for COFCO to build its meat industry chain.
As early as 2009, COFCO announced that it had signed an agreement with Smithfield Foods, the world's largest vertically integrated pork processing group, and Artal Group, one of Europe's largest multinational food groups, to acquire their joint venture Wanweike Foods in China for 194 million yuan. Co., Ltd. (hereinafter referred to as "Wanweike") 100% equity, and incorporated it into COFCO's meat industry chain development plan.
At present, COFCO's meat brands include "Jiajiakang", "Furui" and "Wanweike" brand chilled pork and meat products. These brands are positioned in the high-end market, mainly concentrated in first-tier cities, and mainly concentrated in the upstream link of meat products. And Jinluo Ham has always been aimed at the low-end market and the downstream links of meat products.
