China's leading consumer group, Bright Food, has emerged as one of the frontrunners to acquire UB, which is being sold by its private equity owners Blackstone and PAI. A takeover would attract attention from British politicians worried about the increasing number of companies falling under foreign control.
If Bright Food clinches a deal, it would mark the first time a Chinese company has taken outright control of a major European food company.
Chinese companies are eager to acquire products for the country's burgeoning middle class, as well as gain exposure to western marketing techniques and technological know-how.
Although the Shanghai-based firm is in advanced talks about a takeover of UB, other international food groups such as Kellogg, Kraft, Pepsico, Nestlé and several Indian companies are also circling.
PAI and UB have been considering selling the snacks and biscuits division separately with America's Campbell Soup keen to bid for the snacks arm. But Bright Food's enthusiasm to take over the whole firm is viewed as a more profitable outcome for the company than a break-up.
The Chinese company is advised by Rothschild, while JP Morgan and Goldman Sachs are running the sale for PAI and Blackstone.
Bright Food was formed three years ago when the Shanghai municipal government announced it was merging Shanghai Bright Dairy Group, the holding company for Bright Dairy, with Shanghai Sugar Tobacco and Jinjiang Food. The new conglomerate, named Bright Food, is managed by Shanghai's local administration and the state-owned assets supervision and administration commission.
