China’s Lotus Health Industry Group, an MSG seasoning producer, has revealed plan to acquire a 50% stake in a Malaysian producer as part of its global expansion strategy.
Lotus Health recently inked a non-binding deal with Ajinoriki MSG Malaysia’s local shareholders Loo Siew Kim and Kee Seok Chean to purchase the stake. The 2 shareholders own 49% and 51% stake in the company respectively.
Ajinoriki MSG was previously a dealer for Lotus Health in the Malaysian market and had a net profit of Rmb 11.5 million (US$1.62 million) with a sales revenue of Rmb 221 million (USD31.2 million) in 2022.
The acquisition is part of Lotus Health global expansion move as China’s seasonings industry is in the maturity stage with stiff competition and limited growth opportunities. Lotus Health has even halted the construction of 2 bio-fermentation product projects in the country.
