Wuliangye to speed up M and A activities

Chinese media reported that Wuliangye announced in an investors meeting that it will invest nearly 100 billion yuan ($15.80 billion) in M&A projects in the future to expand its market share. [File Photo]

Chinese liquor maker Wuliangye Group is set to accelerate its M&A activities, in a move to further deepen its presence in the domestic market.

Chinese media reported that Wuliangye announced in an investors meeting that it will invest nearly 100 billion yuan ($15.80 billion) in M&A projects in the future to expand its market share.

Liu Zhongguo, chairman of Wuliangye, said that the company plans to invest about 10 billion yuan in the projects in a preliminary stage, with the approval of the municipal government.

The move comes as the company is checking some target companies that it is eyeing since 2009.

"Wuliangye probably will target some white wine companies in Yunnan province, which also want to cooperate with the company," said Li Debao, industry analyst at Dongxing Securities.

Li added that there's a big possibility that a possible deal will be a friendly takeover.

"M&A is a new direction for white wine producers, which can expand their production capacity through it," Li said.