The global food sector giant, Investcorp, partners with several Chinese entities to buy $500 million worth of food brands. The company announced the plan earlier this Thursday, making headlines in the food and beverage industry.
Investcorp will not only lend their funds to Asian food brands, but it will also buy some manufacturing sites in the region.
The company aims to enter the emerging Chinese middle-class market. It also wants to dip in the developing taste buds of the Chinese consumers for foreign foods.
The Middle Eastern company teamed up with China’s very own Fung Capital Asia Investments Ltd and the state-owned China Resources. Fung Investments, famous for its connection with Hong Kong’s Fung family, is a prominent name in the Asian market.
The two companies received acknowledgment in the Asian food sector.
Investcorp launched an Asian-only private equity fund with the sole purpose of focusing on investing in the food sector. Not to mention, the company also has an existing partnership with China Everbright which focuses on technology investments.
The company’s co-CEO Hazem Ben-Gacem recognizes and plays down Beijing’s slugging economic growth.
In an interview, the Investcorp official confidently shared the defensive nature of the Chinese food sector. They added that it would continue its sales regardless of the macroeconomic factors.
Ben-Gacem then elaborated on his statement, saying that Chinese buyers might hold on luxury goods but not on food consumption.
The negotiation between the Investcorp and its partners was finalized on Wednesday and was immediately announced earlier this Thursday.
Investcorp, based in Manama, Bahrain, is one of the leading providers and managers of alternative investment products. The company has $22.2 billion total assets and is a public business with subsidiaries like Skrill and Georg Jensen A/S.
Tycoon’s Aid
Just before October ended, a known Hong Kong tycoon, Li Ka-Shing, offered to give aid to the food sector. The country’s struggling food and beverage industry is set to have its first batch of relief funds.
Moreover, the donation is part of Li Ka-Shing’s foundation’s previous announcement to give $127 million to local businesses. The proposal will last before the month ends and targets Hong Kong’s small and medium businesses.
Meanwhile, the political unrest in the country meant bad news for some businesses in Hong Kong’s food sector.
Each qualified business will receive a cash fund of HK$60,000 and will be disbursed before the month ends. Li Ka-Shing’s foundation tried to simplify the application process for cash relief for the convenience of the local businesses.
To qualify for the relief, a business must not have more than 50 employees. Aside from the food sector, the Hong Kong tycoon also aims to help the country’s retail industry.
The online application for the relief funds will start tomorrow and will end on November 17 following the disclosure of the details.
Hong Kong Commerce and Economic Development Secretary praised Ka-Shing’s initiative to help smaller investors.
The country continues to stand against two chaotic situations, the slowing domestic and global economy and the ongoing protests.
The massive hit affected all sectors in Hong Kong, including the food sector, hotel, tourism, and retail industry.
COMMENTS