Freshfields Bruckhaus Deringer is advising Chinese state-owned Bright Food Group on a deal that will see it acquire a majority stake in Israeli dairy group Tnuva.
The parties did not disclose terms of their agreement, but The South China Morning Post reported that Bright Food is paying about $960 million to purchse a 56 percent stake in Tnuva from private equity firm Apax Partners in a deal valuing the Israeli company at $2.5 billion.
London-based Apax is also the majority owner of ALM Media LLC, the publisher of The Asian Lawyer.
Tnuva was formed in 1926 as a cooperative including 620 farms and today is the leading dairy company in Israel, with market share of around 70 percent. Apax paid over $1 billion for a 77 percent stake in the cooperative in 2007.
Shanghai-based Bright Food is one of the largest dairy suppliers in China. The company also sells rice, wine, sugar and sweets. It bought a 60 percent interest in British breakfast cereal manufacturer Weetabix Ltd. in 2012 for $2 billion.
Freshfields Beijing partner Alan Wang is leading the firm’s team advising Bright Food. Israeli firm Herzog Fox & Neeman is advising Apax Partners.