Jollibee gets Chinese regulatory approval for full control of Happy Bee Foods
Philippine fastfood giant Jollibee Foods (JFC) has secured government and regulatory approval in China to acquire full control of a noodle manufacturing facility.
The acquisition enables JFC to further strengthen its largest business in China, Yonghe King.
JFC said its wholly owned subsidiary Jollibee Worldwide has been permitted to go ahead with its planned purchase of 30% stake in Happy Bee Goods Processing.
The stake, which is owned by Hua Xia Harvest Holdings, will be purchased through an equity-and-asset-swap deal valued at $10.34m.
Following the acquisition, JFC will take full control of Happy Bee Foods Processing in Anhui Province, China.
JFC said: “The objectives of the acquisition of the 30% ownership of Happy Bee which gave JFC 100% ownership of the food processing facility are to enable JFC to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing the assurance of its food safety.”
As a result of the transaction, Happy Bee will only produce and sell food products to JFC’s restaurant businesses.
Happy Bee holds 100% stake in Happy Bee Foods Processing (Anhui), which runs a facility that caters to the requirements of Chinese-style fastfood restaurant Yonghe King.
With the change in ownership, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses.
As of 31 October, Yonghe King is JFC’s largest business in China with 316 stores, contributing to 8% of its global sales.
JFC operates a total of 22 commissaries worldwide: 15 in the Philippines, 3 in China, 3 in the US and 1 in Vietnam.
It is also in the process of constructing 3 additional commissaries in Luzon Island in the Philippines and a joint venture poultry processing plant in a joint venture with Cargill.
The statement said: “In JFC’s business model, it builds and operates food processing facilities that supply exclusively the food served in its restaurants. This structure is intended to ensure superiority of food quality, food safety and product innovation.”
Last year, a media report said that JFC was planning to acquire an American fast food firm in a deal worth around $1bn.
The acquisition was expected to allow the company to expand its footprint in the world's biggest economy, Reuters reported.
Image: The acquisition enables JFC to further strengthen its largest business in China, Yonghe King. Photo: Courtesy of SOMMAI/FreeDigitalPhotos.net.