Workers at Xiwang Foodstuffs in Zouping County, East China's Shandong province, Dec 26, 2013. [Photo/IC]

JINAN - China's Xiwang Foodstuffs has acquired 100 percent stake of Canada's Kerr Investment Holding Corp, the Chinese firm announced on Friday.

Under the deal signed in Canada on Thursday, Xiwang Foodstuffs, a private company in East China's Shandong province, will set up a joint venture with Primavera Capital, a China-based global investment firm, to buy the Canadian company for $730 million.

A Shenzhen-listed firm specializing in corn oil production, Xiwang Foodstuffs holds 75 percent of the joint venture, while Primavera Capital owns 25 percent.

The joint venture will set up a wholly-owned subsidiary Xiwang Iovate Holdings in Canada, which will then establish Xiwang Iovate Health Science International Inc.

Xiwang Iovate Health Science International will first purchase 80 percent of Kerr's stake. The remaining 20 percent will be purchased three years later.

After the acquisition, Xiwang Foodstuffs will make use of its domestic business network to bring Kerr's business to China's market.

Wang Di, chairman of Xiwang Foodstuffs, said the company will strive to build itself into a top brand in the high-end health food industry.