Chinese capital remains interested in the Spanish agro-food sector

Legend, Asian giant owner of, among other business, Lenovo, competes with four investment funds in the final straight of the selling process of the second largest fishing company in Europe, the Vigo-based Iberconsa. Iberconsa is the largest producer in the world of Argentine red shrimp, which it captures in around twenty fishing grounds distributed throughout the Atlantic.  In 2017, it billed €200 million and its sale price would be €600 million.

The process is being very hard-fought and, among other interested parties, the British fund Pamplona Capital and Platinum Equity, based in California, also press hard.

The Chinese holding is not new to the agro-food sector. It has gone, little by little, building an important portfolio linked to the sea. In 2016, it acquired Kailis Bros, a food giant in Australia and last year it bought China Starfish, which processes hake, squid and shrimp, which it can be complemented with Iberconsa.

Its access into the Vigo fishing company will be the second major operation of Chinese capital in the Galician food sector. In 2015  Shanghai Kaichuang Ocean Resources, now controlled by the Chinese holding Bright Food, acquired Hijos de Carlos Calvo cannery for €61 million.

It seems clear that the Legend’s goal is to grow in the seafood business and lead the growing demand for fish protein in the Asian market.

In addition, everyone is aware that in 2019 it is more than likely that the banks which own the largest Spanish fishing company, Nueva Pescanova, will put their majority share in circulation market. And once within the market with the acquisition of Iberconsa, launching for the biggest fish seems easier.

Source: La Voz de Galicia