Xiamen food group to change hands

Yinxiang Group, a Xiamen-based food enterprise, will become a holding subsidiary of Longda Food Co, according to a recent announcement by Longda.

Longda plans to purchase 51 percent of Yinxiang's stock from its president Chen Fuxiang for about 800 million yuan ($125.6 million).

The announcement said that Chen owns 95 percent of Yinxiang's stock and intends to transfer 51 percent of the company's shares to Longda.

An agreement to that effect has been signed by Chen and Longda.

Yinxiang will become Longda's holding subsidiary after this deal and the former's business scale and areas are expected to be further expanded.

The two enterprises will take advantage of each other's regional superiority to improve overall operational efficiency, optimize resource allocation, lower costs and improve shares in China's pig market.

Longda Food Co, founded in July 2003 and headquartered in Shandong province, specializes in processing meat, generating about 6.6 billion yuan in 2017.

Founded in January 1995, Yinxiang Group integrates livestock feed, grease, meat and bean products processing, marketing, logistics, detection and R&D. It had total sales revenue of 3 billion yuan in 2017.