Chinese health food producer to acquire company in NZ

Nanjing Sinolife United Co, one of the leading health food producers in China, announced plans on Sunday to buy a New Zealand company.

Shanghai Weiyi, a limited liability company 60 percent owned by Sinolife United, will conduct the acquisition of the New Zealand-based Good Health Products Ltd, according to the announcement.

The deal is estimated at over NZ$23 million ($18 million).

Good Health has a substantial market share in New Zealand and Australia and has established an online sales network in Asia including China's Hong Kong, Singapore and the Republic of Korea, which is attractive to Sinolife United as it is eager to expand abroad.

Sinolife United board chairman, Gui Pinghu, expects both sides to gain from the deal and for it to change the traditional cooperative model between Chinese and foreign companies.

Sinolife United was listed on the Hong Kong bourse in January.