Bright Foods Group’s efforts to actively seek international acquisitions are not going well. Following the Australian Sugar, American nutrition retailer GNC has become a fat fled from the mouth of Bright Foods. However, Bright Foods still announced that the new year will continue to take mergers and acquisitions as an important means to achieve growth goals. At present, a batch of mergers and acquisitions projects in the liquor, dairy, sugar, health food, logistics, etc. are actively promoting.

Withdrawal from GNC negotiations again, according to the British "Financial Times" report, China's Bright Foods withdrew from the negotiations to acquire US nutritional food retailer GNC. This move underlines the difficulties in finalizing deals with buyers in emerging markets.

Not long ago, the Guangming Group had just halted negotiations with private equity owners of United Biscuits in the United Kingdom. In December last year, the Chinese dairy group said it was close to acquiring GNC, with a transaction value of 2.5 billion to 3 billion U.S. dollars. According to statistics, the owner of GNC acquired this business for $1.65 billion in 2007.

According to informed sources, as part of the acquisition of GNC, Bright Food held discussions and hoped to bid with a private equity investor. They added that the company had held discussions with Blackstone and TPG. However, the transaction between Guangming Foods and GNC broke down because both parties failed to reach agreement on prices and other terms.

In fact, Bright Food’s first international acquisition attempt ended in failure. It spent more than a year trying to acquire Sucrogen, a sugar and biofuels subsidiary of Australian CSR, but lost to Singapore's Wilmar International in July of last year.

This year plans to increase the number of mergers and acquisitions for the development of 2011 ideas, vice president of Bright Food Group Ge Junjie said that in the consideration of mergers and acquisitions goals, the group will mainly consider whether the other party meets the group's development strategy, whether and the group "6+1 main business" that is dairy , Sugar, wine, integrated food, chain retail, brand agency, and modern agriculture are related to whether it can create synergies with the existing assets of the Group. In addition, reasonable prices and controllable risks are also factors that need to be considered.

Wang Zongnan, chairman of Bright Food Group, said that the goal of overseas mergers and acquisitions will be focused on resource-based companies. In the future, the Group will further use capital resources to control resources and carry out investment and mergers and acquisitions in core resource bases such as domestic and international dairy, sugar, and liquor industries, making the Group's resources layout globalized.

Domestic mergers and acquisitions will focus on the wine industry. According to the relevant person in charge of Bright Food Group, in the wine industry, in 2011, the company will directly enter Shaoxing, a traditional rice wine producing area, through mergers and acquisitions to consolidate its leading position in rice wine, and strategically enter the liquor and wine industry to speed up the establishment of liquor and wine management systems. Breakthroughs in new wines will be achieved; in the integrated food industry will also actively seek investment in mergers and acquisitions in related industries, and quickly expand and expand the main business.

According to Guangming Food Group's vision, the future growth of Guangming Food Group not only comes from endogenous growth, but also largely depends on external mergers and acquisitions. According to the data, Guangming Food Group achieved a total revenue of RMB 61.8 billion in its main business in 2010, an increase of 22% year-on-year, and a total profit of RMB 3.2 billion, a 45% increase over the previous year. The group hopes to secure 70 billion yuan in revenue from its main business in 2011 and strive to reach 75 billion yuan; in 2012, it will ensure sales revenue will reach 80 billion yuan and strive to reach 90 billion yuan.

Planning for the listing of sugar assets The Bright Food Group also made clear in its development plan in 2011 that it will promote the reorganization of the sugar industry and prepare for the overseas listing.

Currently, Guangming Food Group already owns 4 listed companies in Guangming Dairy (600597, stocks), Jinfeng Liquor (600616, stocks), Shanghai Meilin (600073, stocks), and Haibo (600708, stocks). In August 2009, Bright Food Group acquired Yunnan Yingmao Sugar, which was originally intended to be listed in Hong Kong. It is understood that the Group plans to integrate Yingmao Sugar Industry with the original sugar company Dongfang Pioneer Sugar & Liquor Co., Ltd. to promote the listing of new companies in Hong Kong.

According to the data, in 2010, Guangming Foods Group’s sugar sales volume is expected to exceed 2.1 million tons, and its sales revenue will exceed 10 billion yuan, which is the highest level in history. It is the largest sugar industry enterprise with integrated production and sales operations. Among them, Yingmao Sugar Industry has contributed a lot, and Guangming Food Group has obtained a 40% return on investment in its first year of acquisition of Yunnan Yingmao.