Japanese soy sauce is a likely target of the fund.
Reuters reports that the Singapore office of global asset manager Investcorp has teamed up with state-owned China Resources and Fung Investments to create a private equity fund that will invest up to US$500m in food brands across Asia, according to Reuters.
Investcorp has US$28.2b worth of assets under management, including Britain’s Tyrells crisps and Australia’s Yarra Valley snackfoods in its portfolio, and has identified China as an emerging market for Western-style foods.
Soy sauce produced in Japan is also likely to be a target for the partnership to buy and export to China.
Investcorp co-chief executive Hazem Ben-Gacem played down China’s slowing economic growth which, at 6% in the third quarter of 2019, was the weakest for 27-1/2 years.
The transaction was finalised in Hong Kong late Wednesday, with the three parties signing an initial funding agreement of US$300m.
Read the full report here.
Do you know more about this story? Contact us anonymously through this link.