Nestle (NESN.VX) is planning to take over Chinese food company Hsu Fu Chi International (HSFU.SI) for over USD 2 billion. Industry analysts say that buying off the Chinese food company will boost Nestle's business that is witnessing sluggish sales at home.
The deal is still in the nascent stage with several other companies also showing interest in buying over the Chinese food company. Nestle believes that if the deal clicks and the Chinese authorities give their approval, it will make a great difference to its business during this slack period. This is because Hsu Fu Chi offers 6% exposure to the China candy market as a manufacturer of several snacks like peanut candies, pop jellies and sachima rice snacks. Moreover, this Chinese food company has good cash flow.