Nestle SA (NESN)
, the world’s largest food company, agreed to buy a 60 percent stake in
Hsu Fu Chi International Ltd. (HFCI)
, a Chinese snack and candy maker, for S$2.07 billion ($1.7 billion) to boost sales in the world’s most populous country.
Nestle offered S$4.35 in cash for each share of Singapore- listed Hsu Fu Chi, an 8.8 percent premium over the stock’s closing price on Friday.
The Vevey, Switzerland-based company aims to catch up with rivals such as Unilever that get a larger proportion of sales from emerging markets. Chief Executive Officer Paul Bulcke has set the goal of getting 45 percent of revenue from
developing countries
by 2020, compared with about a third now. Unilever generates about half its revenue from those markets. Nestle agreed to acquire a 60 percent stake in
China
’s Yinlu Foods Group in April. The controlling Hsu family will own 40 percent of Hsu Fu Chi after the acquisition and the company will be delisted from the Singapore exchange, according to the statement.
