South Korea’s third largest conglomerate SK Group has decided to buy a 14-percent stake in Chinese food service company Joyvio Group, betting big on the Chinese food market that is grow rapidly on rising interests in healthy eating by Chinese consumers.

According to sources from the investment banking industry on Thursday, SK Group will invest around $188 million jointly with a Korean private equity fund to acquire a 14-percent stake in Joyvio Group. The Korean conglomerate plans to finance almost half of the price through loans from a financial institution and sign a final deal within this month.

Founded in 2012, Joyvio Group is a wholly-owned subsidiary of China’s diversified investment holding company Legend Holdings Corp., which is also a parent company of the country’s tech giant Lenovo. Joyvio, the largest producer of blueberries and kiwis in China, has been expanding its global presence by reinforcing strategic partnerships with multinational fruit and vegetable producers based in Chile and Australia.

As Chinese consumers are paying an ever-greater interest in healthier lifestyles and nutritious food, SK Group believes that China’s agriculture and food industry would grow rapidly, according to sources. “The Chinese food market has been growing by 20 percent to 30 percent annually,” said an official close to the deal, adding that the investment is a testament to SK group’s high interest in the food and agriculture sector.

The deal is also expected to strengthen cooperation of SK Group and Legend Holdings. In November 2018, SK invested about $300 million in a $600-million fund established by Legend Capital, a venture capital subsidiary of Legend Holdings.

By Kang Woo-seok and Choi Mira

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]