(File photo of Beijing Sanyuan Food)

Chinese State-owned enterprise Beijing Sanyuan Food on July 28 announced its intention to start bidding with the Shanghai-based investment company Fosun International on the purchase of French spreads brand St Hubert.

According to a joint statement from Sanyuan and Fosun, the two companies will jointly purchase the stock rights of Brassica Holdings, which wholly owns St Hubert. The deal would be priced at around 4.94 billion yuan. Specifically, Sanyuan would hold a 49 percent stake while Fosun would hold a 51 percent stake.

Analysts believe that the purchase will easily be approved by Chinese authorities, but the deal might be challenged by overseas authorities.

St Hubert, founded in 1904, is famous for offering a healthy and balanced diet. The spreads maker produces over 35,000 tons of products per year.

Sources close to Fosun said the purchase will complement Sanyuan’s dairy products and help the Chinese brand adapt to the advanced customer market. The two companies involved in the bidding process bring their unique advantages, as Fosun is familiar with overseas market purchases and Sanyuan boasts superior dairy product management and production, news site Caixin.com reported.

The purchase is expected to introduce advanced technology and products into China, which would then be used to better serve the Asia-Pacific market, said the source.