Food & Drink Company Nestle acquired Majority Stakes in Chinese Candy-maker Hsu Fu Chi

World's biggest food and drink company Nestle on 11 July 2011 stepped into the Chinese market with the acquisition of majority stake in candy maker Hsu Fu Chi for $2.1 billion ($1.7 billion).

The Swiss manufacturer of Nescafe coffee, KitKat bars and Dreyer's ice cream acquired 60 per cent of shares in Singapore-listed Hsu Fu Chi, which had sales of almost $800 million last year. The Hsu family will retain the remaining 40 per cent stake. The current CEO and Chairman Hsu Chen will continue to hold his post.

Hsu Fu Chi sells candies, cakes and pastries. It was started in 1992 by four Taiwanese brothers and grew into one of China's largest confectionary companies.

The acquisition by Nestle reflected the company's expansion plans in emerging economies where its sees the strongest chances of future growth.