. Energy News .

Nestle to pay 1.4 bn francs for 60% of Hsu Fu Chi
by Staff Writers
Zurich (AFP) July 11, 2011

Swiss food giant Nestle said on Monday it had agreed to take a majority stake in Chinese sweetmaker Hsu Fu Chi for 1.4 billion francs (1.2 billion euros, $1.7 billion).

"Under the proposed agreement, Nestle intends to acquire 60 percent of Hsu Fu Chi whilst the Hsu family will own the remaining 40 percent," said Nestle in a statement.

The Swiss group will offer 4.35 Singapore dollars ($3.56, 2.50 euros) for each share of Hsu Fu Chi, which is listed on the Singapore stock exchange. This would be 24.7 percent above the firm's six-month average share price.

It added that it has secured approval for the deal from the Chinese firm's two largest independent shareholders -- Arisaig Partners which holds 9.0 percent and subsidiaries of the Baring Asia Private Equity Fund which hold 16.5 percent of the firm.

Nestle chief executive Paul Bulcke said the partnership would boost the group's presence in China.

"It also demonstrates our long-term commitment to China and enhances our ability to grow our portfolio of international and local brands in this dynamic market," added Bulcke.

Hsu Fu Chi's chief executive Hsu Chen meanwhile pledged to "accelerate the development of the Hsu Fu Chi brand, its production and distribution capabilities and ensure Hsu Fu Chi's continued growth momentum and brand legacy for the future."

The Chinese sweetmaker's net profit for the quarter ending March 31 reached 206.6 million yuan (22.0 million euros, $32.0 million), with revenues at 1.5 billion yuan, according to its latest income statement.

The firm operates four large-scale factories in China and employs 16,000 people.

Euromonitor analysts noted that Nestle's stake in Hsu Fu Chi would make it the second largest confectionery player in China by retail value sales.

"The combined retail value market share expected to exceed 6 percent of the dynamically growing Chinese confectionery market," they said, adding that the market is expected to grow $2.1 billion over the next five years.

Zuercher Kantonalbank analysts said Nestle has paid "a high price" for the stake, but noted that this price is mitigated by "the strategic importance of China and the fact that Nestle is able to finance the acquisition without any problems."

This marks Nestle's second big acquisition. In April, it said it had acquired 60 percent of Chinese firm Yinlu Foods Group, which makes ready-to-drink peanut milk and ready-to-eat canned porridge.

Related Links
Farming Today - Suppliers and Technology

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries

Ethiopia says it needs $398 million for food aid
Addis Ababa (AFP) July 11, 2011 - Ethiopia said Monday it needed $398 million to help millions of people in need of food aid due to a severe drought.

The Horn of Africa region has been hit by one of its worst droughts in decades which has left millions of people facing starvation.

"It is estimated that a total of 4.5 million people will require humanitarian assistance during the remaining period of the current year from July to December 2011," Agriculture Minister Mitiku Kassa told reporters.

The figure marks a 40-percent rise in those needing food aid since April.

On Saturday, the UN emergency relief coordinator Valerie Amos called for long-term solutions to curb the effects of the severe drought in Ethiopia.

Ethiopia has also seen an influx of Somalis seeking relief from the harsh drought and food scarcity.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Smartphones help world's winemakers foil fraudsters
Bordeaux, France (AFP) July 10, 2011
For Charles Pillitteri, the fight against fraudsters began when he discovered fake bottles of his Canadian ice wine in Taiwan in 1998. He tried everything to safeguard his product from counterfeiting, from 22-carat gold to invisible ink, only to realise that none would protect the consumer at point of purchase. The proprietor of Pillitteri Estates Winery in Niagara-on-the-Lake, in the Ca ... read more

Underwater Antarctic Volcanoes

Lockheed Martin and Esri Sign Partnership Towards On-Demand Geospatial Apps and Services

NASA Flies Greenhouse Gas Mission Over Nevada Salt Flat

NASA Flies Greenhouse Gas Mission Over Nevada Salt Flat

A new algorithm could help prevent midair collisions

AI Solutions to Assist Air Force with GPS Satellite Positioning Data and Analyzing GPS Anomalies

GPS IIIB Satellites to Add Critical New Capabilities

LOCiMOBILE GPS Tracking Apps Cross over 1 Million users in 116 countries

Herbicide implicated in mass tree death

Madagascar seizes rosewood containers at port

Using DNA in fight against illegal logging

Brazil revokes Amazon logging permits after deaths

Filters seen as greenhouse gas weapon

Grasses eyed as ethanol source

Hot springs microbe yields heat-tolerant enzyme

Microalgae could be next big cash crop for Texas energy farmers

Big solar panel factory launched in Italy

Tecta Solar Expands East Coast Presence Fueling Growth through New Hires and Service Expansions

Pyron Solar Achieves Milestone For Its Floating CPV Power Production System At Prototype Test Site

U of T researchers build an antenna for light

Wind power numbers down in Britain

Wind farm inquiry balanced and reasonable

Power-One Inverters Chosen to Power WindTronics

Sheringham Shoal signs up For WindManager wind farm management system

Three die in China coal mine rescue

21 trapped in China iron ore mine: report

Australia PM hails coal deal amid poll slump

Two rescued after week trapped in China mine

China province seeks to ease 'one-child' policy

Chinese bishops 'taken away' by police: report

China jails six over riots in industrial hub

China says Tibetans 'closely' linked to majority Han

Memory Foam Mattress Review
Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement