Uni-President eyes drinks and noodle factories in China

The nation's largest packaged food producer by revenue, Uni-President Enterprises Corp (統一企業), is in talks with three or four food companies in China on possible acquisitions, the company chairman said yesterday.

Uni-President is interested in buying large Chinese beverage and instant-noodle makers, company Chairman Kao Ching-yuan (高清愿) told reporters after the company's annual general meeting. He didn't specify the acquisition targets.

As Uni-President's total investment in China has reached the limit allowed by the government, the company will fund future acquisitions there with cash from its Chinese units or affiliates, which had a combined net profit of more than NT$1 billion (US$30.6 million) last year, Kao said.

Uni-President falls in the category of listed Taiwanese companies which can invest up to 20 percent of their net worth in China because its net worth is above NT$10 billion.

Kao said Uni-President is also interested in teaming up with foreign companies to expand in the rapidly growing Chinese market.

In February, it formed a strategic alliance with Kraft Foods Inc.

Kraft already sells coffee, other drinks, cookies and crackers in China. The partnership will help Kraft sell more of its products in China across several distribution channels.

Uni-President is also considering an initial public offering of a Chinese unit in Hong Kong, Kao said, without elaborating.

Analysts have said they believe the unit is President Enterprises (China) Investment Co, a wholly owned Uni-President subsidiary headquartered in Shanghai.