(Photo : Bright Food Company)

Bright Food Company Ltd, the second-largest food manufacturing company headquartered in Shanghai, China, said it is in the process of talking with Israel's largest dairy products manufacturer, Tnuva, for a possible acquisition.

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According to a Chinese paper, the deal, if it pushes through, could reach around CNY100 billion, or $16.34 billion considering that Tnuva holds 70 per cent of Israel's dairy market and is a major producer of meat, eggs, and package food.

A spokesman for Bright Food, Pan Jianjun, told wire agency Reuters that the two companies are in the process of understanding one another. He stressed that Bright Food is interested in acquiring majority shares of Tnuva.

Bright Food's Global Expansion Plan

The Chinese food company seeks to expand its global reach by acquiring several foreign firms all over the world. Recently, it has acquired New Zealand's Synlant Milk Ltd, a dairy processing company based in Canterbury Region for $58 million. The company processes more than 500 million liters of milk every year.

Bright Food also acquired 75 per cent of Australia's Manassen Foods for $478 million.

In May, this year, the Shanghai-based and state-owned company, which makes the popular White Rabbit candy, bought a 60 per cent stake in UK cereal maker Weetabix Food Co in a $1.8 billion deal.

Sinoma to Acquire German's Hazemag

Meanwhile, another Chinese company is in a global acquisition spree, joining other major Chinese companies who are looking abroad to further expand their global reach.

On Tuesday, the Hong Kong-listed China National Materials Group (Sinoma) said it's subsidiary, Sinoma International Engineering, will pay $136 million for a 50.09 per cent stake in Hazemag & EPR, a German mining equipment firm.

According to Sinoma Chairman Liu Zhijiang, the acquisition of the German company by the state-owned firm will further boost Sinoma Internationa's rapid expansion.

Liu said acquiring Hazemag & EPR from its parent, Schmidt Kranz Group, will further improve Sinoma's technique and will establish the company to the field of mining equipment.