China’s Bright Food s in talks to buy Israel’s Tnuva Food

China's Bright Food Group Co is in talks to buy Tnuva Food Industries Ltd in a deal that may value Israel's biggest food company at more than $1 billion.

London-based private equity firm Apax Partners and Mivtach Shamir Food Industries had acquired a 77-per cent stake in Tnuva in 2008 for more than $1 billion.

Founded in 1926, Tnuva is Israel's largest dairy products manufacturer with sales accounting for 70 per cent of the country's dairy market. It also sells meat, eggs and packaged food.

It owns seven out of the ten most known food brands in Israel and accounts for over 14 per cent of shelf space in supermarkets.

Tnuva was formed as an agricultural cooperative of 620 farming communities across the country, who were also the company's suppliers of raw milk and produce.

Bright Food, whose brands include Big White Rabbit candy and Aquarius drinking water, is owned by the Shanghai municipal government and is China's second largest food company.

Founded in 2006, Bright Food has cut deals with well-known multinational companies, including Coca Cola, PepsiCo, Nestle, Danone, Suntory, Xiehe and Dajing, among others.

It has more than 3,300 supermarkets and retail outlets and e-commerce network in Shanghai and other provinces.

Since 2011, the company has been on the prowl for overseas acquisitions and aims to generate revenues of $14 billion by 2014.

In recent years, the Hong Kong-listed company acquired majority stakes in several overseas food companies, including Australia's Manassen Foods, New Zealand's privately-owned dairy firm Synlait Milk, and UK's cereal maker Weetabix Food Co.