cofco, which controls eight listed firms, is considering combining units and selling peripheral businesses to raise profitability.bloombergbeijingcofco corp, china&rsquos largest food company, has invited investment banks to submit proposals for a possible group restructuring, people with knowledge of the matter said.the beijingbased firm, which controls eight listed companies, will consider combining units and selling peripheral businesses to improve profitability, according to the people.possibilities that may be proposed include cofco&rsquos cookingoil producer china foods divesting its confectionery business or merging with a sister company such as oilseed processor china agriindustries holdings, they said, asking not to be identified as the information is private. listed affiliates of cofco, which has operations in 140 countries, surged yesterday to add a combined 1.4bn in market value. the governmentowned group was founded in 1949 and grew through a series of mergers to amass more than 57bn of assets, according to its website.&ldquocofco has been very active in acquiring overseas assets,&rdquo said liu guanyu, a manager at xiamen international trade group corp, which buys and sells commodities including iron ore and rubber. &ldquoits strategy now is to consolidate, to create a full industrial chain in the global agricultural market.&rdquothe staterun company, which last year bought controlling stakes in dutch grain trader nidera bv and noble group&rsquos agribusiness arm, is also weighing a plan to combine all the grain, edible oil and sugar businesses currently spread across different units, according to two of the people. it would then seek a stockmarket listing for the merged business by 2019, they said.the government picked cofco in july for a trial on improving the efficiency and returns of investments, part of a push by chinese president xi jinping to introduce more market discipline at stateowned enterprises. cofco hasn&rsquot yet hired an adviser or decided on a course of action, and any restructuring plan would need regulatory approval, the people said. shares of china agriindustries rose 8.7 in hong kong to close at the highest in more than two years, giving it a market value of 3.2bn. china foods gained 6.4 while the group&rsquos packaging arm, cpmc holdings, advanced 6.5. cofco tunhe co and cofco biochemical co jumped by the 10 daily limit in shenzhen, while cofco property group co closed 8.2 higher.cofco owns stakes in china mengniu dairy co, the nation&rsquos secondlargest dairy producer, and joy city property, which develops commercial real estate. cpmc holdings makes the aluminum cans used by china&rsquos bestselling snow beer, while china foods produces wine, sells cooking oil under the &ldquofortune&rdquo brand and bottles cocacola co beverages in parts of northern china.the group also runs tourist resorts, a regional bank and an insurance venture with londonbased aviva. two phone calls and an email to cofco&rsquos press office weren&rsquot answered, while investorrelations officials at china agriindustries didn&rsquot immediately respond to calls and an email seeking comment.jacky man, an investorrelations official at china foods, declined to comment when reached by phone.cofco said on may 12 it poached matthew jansen, a senior executive from us competitor archerdanielsmidland co, to lead its push into global agricultural trading. the government owned firm spent 3.5bn on acquisitions last year that will allow it to compete with bunge, cargill and louis dreyfus commodities as rising incomes drive up food demand in china.noble agri, the venture cofco formed after buying the agricultural arm of hong kongbased noble group, and nidera both have large operations in latin america and eastern europe, two key exporting regions for wheat, corn and soybeans. 
