Nestle majority owner in Chinese confectionery

The Ministry of Commerce has approved Nestle's acquisition of a 60% share of China-based, Singapore-listed Hsu Fu Chi International for US$1.7 billion. The target is headquartered in Guangdong, operating four factories that manufacture confectionaries and snacks.

Hsu Fu Chi's shares are expected to be delisted at the end of this year after Nestle purchases 43.5% of the stake from independent shareholders and 16.5% of the shares from the Taiwanese Hsu family, who retains the remaining 40%.

King & Wood Beijing-based partner, Susan Ning was the sole legal counsel to Nestle in its anti-monopoly clearance strategy and review. Representing Nestle was White & Case Beijing partner Vivian Tsoi and Singapore-based William Kirschner. Maples and Calder advised Nestle on Cayman Islands Law. The Hsu family was counselled by Hong Kong-based Denis Jong of Reed Smith Richards Butler and Singapore firm Loos & Partners.