Weetabix is to come under Chinese ownership after a deal involving the Asian country's biggest overseas food takeover.

Shanghai firm Bright Food will take a majority 60% share of the Weetabix Food Company, placing a £1.2 billion value on the cereal giant, while current private equity owner Lion Capital will retain a 40% stake.

Northampton-based Weetabix, which also owns Alpen and Ready Brek, was founded in 1932 and was family owned until 2004 when it was bought by a Texan private equity firm. In a statement issued by the Weetabix Food Company (“WFC”) it said it is delighted with the announcement of major investment and the opportunity for further growth with the Bright Food Group and Lion Capital.

A majority shareholding in WFC by Bright Food, one of China’s leading food groups, will create new opportunities for the company and will be a catalyst for further success and international growth.

In welcoming the deal, WFC CEO Giles Turrell said: “Weetabix Food Company is a highly successful company, the second largest cereal manufacturer in the UK, with an exceptional portfolio of brands that makes it attractive to investors.

While the company’s focus has been on reinforcing and building on our leading position in the UK, I believe there are also substantial opportunities to further grow the business internationally, in North America, Asia and beyond. We are very excited about the future prospects for Weetabix under the guidance and support of shareholders who bring a strong track record of success and the complementary skills and expertise to execute our strategy and vision for the business.”

Turrell continued “We are excited about the next phase in the Weetabix Food Company growth plan and look forward to even greater levels of success in the future.”

Last year China's Bright Dairy & Food Co bought a 51% stake in New Zealand milk producer Synlait, in order to lift exports of milk powder and infant formula to China.