Oriental Rise to Acquire Major Stake in Hubei Daguan Tea Industry Group
Oriental Rise Holdings Limited (NASDAQ: ORIS) has announced plans to acquire a controlling stake in Hubei Daguan Tea Industry Group Co., Ltd. The company signed a non-binding letter of intent, marking another step in its vertical integration strategy. Daguan Tea operates across tea cultivation, processing, and brand management, making it a key target for expansion.
The proposed deal follows Oriental Rise’s long-term goal of securing greater control over tea raw materials and production. By integrating Daguan Tea’s operations, the company aims to improve supply stability and refine its product mix. Enhanced coordination along the supply chain and stronger operating leverage are also expected benefits.
Before finalising the acquisition, Oriental Rise will conduct thorough due diligence on Daguan Tea. This review will assess financial, operational, and strategic aspects before negotiations move toward a definitive agreement. The move reflects the company’s ongoing push to consolidate its position in the tea industry.
If completed, the acquisition would strengthen Oriental Rise’s vertical integration efforts. The deal is designed to boost efficiency, from raw material sourcing to final product delivery. Further updates will depend on the outcome of due diligence and subsequent negotiations.
