Chinese consumer conglomerate Fosun plans to buy a French margarine maker for €625m, marking its second international deal in a single week shortly after it was implicated in Beijing’s probe of acquisitive private firms.
Fosun and Chinese state-owned dairy firm Sanyuan Foods said late on Friday that they had agreed to buy St-Hubert SAS from European private equity firm Montagu, pending approval from the French firm’s workers council and regulators in both countries.
Earlier this week it bought an office building in Sao Paolo, Brazil, for $140m, Brazilian media reported.
The news comes as Chinese banks probe their exposure to some of the country’s most active international purchases, amid a crackdown on capital flight and the use of high-interest shadow fundraising. Fosun was one of the companies named in a leaked document ordering the probe but has been largely insulated from subsequent fallout.
Fosun CEO Guo Guangchang has had to reassure investors this month that the company was operating normally and “we have been busy with our work,” after reports of the probe caused company shares to drop.