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Hony, Zoomlion bet on Chinese agricultural growth in $450m Chery deal

20 Aug 2014

CheryChinese private equity firm Hony Capital has picked up a 20 per cent stake in farm machinery business Chery Heavy Industry in a RMB696m ($113m) deal.

Hony teamed up with regular partner Zoomlion Heavy Industry Science and Technology for the deal, which has seen the pair buy a combined 80 per cent of the business for RMB2.78bn.

Reuters reported that China is looking to increase agricultural productivity and food safety, with the agri-machinery industry expected to grow to an output of RMB400bn by 2015.

Last month Hony agreed a £900m deal to buy the parent business of UK restaurant chain Pizza Express from fellow buyout house Cinven.

Hony CEO John Zhao said he hoped the firm would be able to accelerate Pizza Express’ growth in the Chinese market, where it already has 22 restaurants.

Cinven was said to be hoping to collect $1bn for the business but saw bids fall short.

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