(Yicai Global) Aug. 14 -- Sundiro Holding Co. [SHE:000571], a Chinese firm mainly engaged in the coal mining and logistics sectors, will spend CNY548 million (USD82.3 million) to acquire 100 percent stakes in Lirtix SA and Rondatel SA, two Uruguayan beef processors, as it shifts its focus toward the meat industry.
The beef suppliers will become wholly-owned subsidiaries of the listed company after the deal is complete.
Sundiro expects to create new revenue streams through its expansion into the meat industry and hopes the move will also offset cyclical risks associated with the coal sector.
Rondatel SA's main business is the procurement of beef from local farmers and through live cattle auction markets, while Lirtix SA offers beef processing services for the former. The processor can handle 80 beef cattle per hour.
Among Rondatel SA's beef products processed primarily by Lirtix S.A., around 30 percent are sold in the local market while over 10 percent are sold to third parties in such places as Russia, South America, the Middle East, and North Africa. The remainder is exported to China.
Beef products from Uruguay are quite competitive in China, Sundiro said.