Bright Food Mulls Bid For TWE To Build Developed Market Exposure

China-based food and dairy producer Bright Food Group is mulling a bid for Australian wine producer Treasury Wine Estates (TWE), according to media reports. While TWE holds some strategic appeal to Bright Food in terms of providing access to the high-consuming Australian wine market, ongoing challenges in the market such as persistent oversupply and weakening demand in UK and the US could dim TWE's attractiveness. Given this, we believe Bright Food may not be willing to offer a price that meets with Foster's expectations.

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