Food job loss fears as Chinese buyers mull over United Biscuits deal
As reported in the Financial Times this month, a major Chinese food company is considering taking over United Biscuits, the iconic British manufacturer of well-loved snacks such as Jaffa Cakes, Mini Cheddars, Jacob's, McVities, Penguin and Hula Hoops.
Speculation is currently mounting over whether Bright Foods, located in Shanghai, will put in a bid for the company, which is currently owned by private equity firms in the US and France. The Financial Times estimates that such a deal could be worth up to £2.5 billion.
Job loss concerns
Similarly to the recent Kraft takeover of Cadbury, many in the food industry are concerned that such an illustrious deal would result in many food job losses as the Chinese company attempt to 'rationalise' the business. The Kraft/Cadbury deal ended up with 150 people losing their jobs.
MP John McDonnell from Hayes, where United Biscuits has its head office and employs 500 of its 7,000 staff in food jobs, is optimistic about the deal. He said:
Speculation is currently mounting over whether Bright Foods, located in Shanghai, will put in a bid for the company, which is currently owned by private equity firms in the US and France. The Financial Times estimates that such a deal could be worth up to £2.5 billion.
Job loss concerns
Similarly to the recent Kraft takeover of Cadbury, many in the food industry are concerned that such an illustrious deal would result in many food job losses as the Chinese company attempt to 'rationalise' the business. The Kraft/Cadbury deal ended up with 150 people losing their jobs.
MP John McDonnell from Hayes, where United Biscuits has its head office and employs 500 of its 7,000 staff in food jobs, is optimistic about the deal. He said:
"It's too early to tell at the moment, but should the deal go ahead, I would hope that the new company would commit to a long-term future in the area, and I would expect them to provide continuity in the same way that they have done in the past, and work with the local community."
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