COFCO Wine & Spirits, the wine unit of the state-owned food company COFCO, recently sealed the acquisition of Chilean winery Biscottes for US$18 million, marking its first ever overseas purchase.

The negotiation between COFCO and Biscottes, one of the top ten largest wineries in Chile, went on for over a year before completing the acquisition. According to Qu Zhe, board chairman of COFCO Wine, the deal includes a 5,300-mu vineyard and wine production capacity of 14,000 tons per year.

After the deal, COFCO aims to launch a new mid- to high-end wine brand that targets both the domestic and overseas markets of Europe and the United States.

Sources say that several other COFCO overseas acquisitions are also running smoothly.

China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.