Anti-monopoly watchdog gives Nestle nod
- By He Shan
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China.org.cn, September 5, 2011
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Nestle dispays its products at a?booth. [CFP] |
Nestle, the world's largest food manufacturer, announced Sunday that its bid for a 60 percent stake in China's Yinlu Food Group has been approved by the Ministry of Commerce.
The deal will be completed after both companies complete the requisite ownership transaction procedures, a move that will help Nestle deepen its penetration into the Chinese market.
The deal was submitted to the Ministry of Commerce for anti-monopoly review on May 24. The ministry approved the deal after the three-month review period.
Nestle announced its intention to purchase 60 percent of Yinlu Food Group on April 18, the first time this year that Nestle had moved to invest in a Chinese company.
Approximately three months later, on July 11, Nestle entered another partnership agreement with Chinese candy and pastry producer Hsu Fu Chi International Ltd.
Yinlu Food Group, a family-owned food maker based in Xiamen City, capital of Fujian Province, posted sales of 5.46 billion yuan (US$854 million) in 2010. Nestle's revenue in China reached 20.4 billion yuan (US$3.19 million) last year.
China's business press carried the story above on Monday.
