Anti-monopoly watchdog gives Nestle nod
Updated: 2011-09-05 15:58
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 ($854 million) in 2010. Nestle's revenue in China reached 20.4 billion yuan last year.