Xiwang to develop Chinese diet products after buying Canada's Kerr

JINAN - A leading Chinese corn oil producer says it will develop diet products tailor-made for Chinese consumers after it has completed the acquisition of Canadian diet food company Kerr.

Sources with the Shenzhen Stock Exchange listed Xiwang Foodstuffs, based in East China's Shandong province, said the consortium it set up with Chinese investment firm Primavera Capital will conclude the purchase of all stakes in Kerr Investment Holding by November.

The deal, valued at 4.8 billion yuan (about $713 million), has been endorsed in an extraordinary shareholders meeting of Xiwang, the sources said.

Xiwang Board Chairman Wang Di said as issues surrounding capital and anti-monopoly had been solved, the process would be fast-tracked.

He added that Kerr's products were mainly sold in the North American market. The acquisition will help Kerr enter emerging markets such as China. After the purchase, Xiwang will develop products more receptive to the Chinese.

Kerr, founded in 1998, manufactures four brands of diet food products and seven sports nutrition products, which are sold in 130 countries and regions.