Companies

COFCO buys Chilean vineyard for $18m

(China.org.cn)
Updated: 2010-09-21 16:51

COFCO Wine & Spirits, the wine unit of the state-owned food company COFCO, recently sealed the acquisition of Chilean winery Biscottes for $18 million, marking its first ever overseas purchase.

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The negotiation between COFCO and Biscottes, one of the top ten largest wineries in Chile, went on for over a year before completing the acquisition. According to Qu Zhe, board chairman of COFCO Wine, the deal includes a 5,300-mu vineyard and wine production capacity of 14,000 tons per year.

After the deal, COFCO aims to launch a new mid- to high-end wine brand that targets both the domestic and overseas markets of Europe and the United States.

Sources say that several other COFCO overseas acquisitions are also running smoothly.