S.Korean firm to buy stake in Meihua

CJ Cheiljedang Corp, South Korea's largest food company, is buying a controlling stake in Shanghai-listed Meihua Holdings Group, a monosodium glutamate seller, for an undisclosed amount.

Under the deal, CJ will transfer its biological fermentation assets in China to Meihua. In return, Meng Qingshan, the controlling shareholder of Meihua, and other shareholders will transfer part of their equity stake to CJ. Meihua will also issue an undisclosed amount of new shares to the South Korean firm.

Meihua officials refused to comment on the matter or provide any further details, when contacted.