Swiss food manufacturer, Nestle announced the acquisition of a Chinese company, a confectionery manufacturer, Hsu Fu Chi. With this step Nestle strengthens its position in the booming Chinese market. The deal will amount to 1.7 billion US dollars.
We are talking about buying 60% shares Hsu Fu Chi, the company will continue to be managed by the Hsu family, the founders and owners of the business. The company produces a wide variety of sweets and snacks, and has a well-developed distribution network in the Chinese food market. For Nestle acquiring such a wide range of opportunities means expanding the prospects for the development of the Chinese market and a significant increase in sales in the future (sales Hsu Fu Chi last year amounted to about 800 million US dollars).
Company Nestle entered the Chinese market about a quarter of a century ago and during this time has managed to become one of the largest players in the food market. Here, both world-famous brands of the company and local ones created specifically for Chinese buyers are very popular.