Nestlé continues to focus on the growth market of China: The Swiss food giant would expand its presence in China by acquiring Chinese candy manufacturer Hsu Fu Chi. The only missing poiont is the okay from the authorities.
Nestle wants to acquire 43.5 percent of the shares initially, as the company said. If the shareholders approve, Nestle will then increase the amount by 16.5 percent to 60 percent. Nestlé had already reached an agreement with the founding family Hsu, the two largest shareholders have the support of the group. The acquisition still need approval from the authorities.
One of the largest acquisitions in China
According to media reports, the market value of the Chinese company is 2.6 billion dollars. It mainly produces sweets, chocolates and pastries for the Chinese market. This is one of the largest acquisitions of a Chinese company by a foreign competitor.
Nestlé expands further into the People’s Republic, where the company last year achieved a turnover of about € 2.3 billion. This represents an increase of eleven percent over the previous year. In Europe, however, the Group recorded a decline of 4.3 percent. Nestlé had acquired 60 percent of the Chinese Yinlu Foods Group in April.