Heinz sells China business to local firm

HJ Heinz (HNZ.NYSE) will sell its China packaged food division to Zhengzhou Sanquan Foods (002216:SZ), a mainland processed food company, Bloomberg reported. The buyout will boost Zhengzhou’s competitiveness, the company said in a filing to the Shenzhen Stock Exchange, however the value of the deal was not disclosed. Zhenzhou’s share price rose to an 11-month high following the announcement. Heinz said the deal reflected the company’s move to de-emphasize its non-core frozen food businesses abroad. Heinz agreed earlier this month to a US$23 billion buyout by a consortium of investors led by Berkshire Hathaway (BRK.B.NYSE).