Nestle buys part of Hsu Fu Chi in business negotiation deal
Nestle will take a 60 per cent share in Chinese company Hsu Fu Chi.
Merger and acquisition advisors may have been used by Nestle after the firm announced a partnership with Chinese firm Hsu Fu Chi.
The deal will see the world's largest food company Nestle - which was founded in 1866 - purchase 60 per cent of the latter, which will retain the other 40 per cent.
A scheme of arrangement will be required in order to acquire 43.5 per cent of its shares from independent shareholders.
Nestle chief executive officer Paul Bulcke said: "This proposed partnership will greatly reinforce our presence in China."
He added the agreement, which may have required negotiation skill, highlights the organisations "long-term commitment" to this part of the Asian sector.
"[It] enhances our ability to grow our portfolio of international and local brands in this dynamic market," Mr Bulcke observed.
Hsu Chen, chief executive officer and chairman of Hsu Fu Chi, welcomed the move and said it showcases the quality of his company.
Posted by Ken Hayes