"We signed a preliminary agreement in June with Shandong Xinchang Group, based near Qingdao in Shandong Province," said Tyson Foods spokesman Gary Mickelson. "The agreement is subject to further due diligence and government approvals, which could take several months to complete."

It is reported that, if completed, the deal would give Tyson Foods 60% ownership in a vertically-integrated poultry operation consisting of Xinchang’s existing assets and a new complex currently under construction in Shandong Province. "Xinchang Group is one of China’s leading poultry producers with sales of US $289 mln," said the spokesman.