Nestle SA just finished acquiring a 60% stake in China’s Yinlu Foods Group, the company recently said in a statement. After the acquisition, Chairman of Yinlu, Chen Qingyuan, will stay in charge of the join company in Xiamen.
The deal is still waiting for final approval from local governments that include governments in Fujian, Shandong and Hubei, but it has already received the approval from the Chinese Minister of Commerce.
The companies have announced that they plan to invest 2.4 million yuan ($395 million) in Yinlu which will aid in the production of new facilities and the expansion of existing ones.
Nestle SA’s goal with this investment is to double the amount of its investment in the Chinese coffee market within the next three years. Yinlu had a 52.5% increase in its revenue in 2010, reported a revenue of 5.4 billion yuan.
Nestle SA is also reportedly planning to purchase a 60% stake in the Chines candy maker Hsu Fu Chi International Ltd.