Hershey has hatched out a new plan to acquire one Chinese sweet maker to the tune of $584 billion in cash and debt. The move is part of Hershey’s strategic decision to expand into one of the world’s fastest growing consumer markets.
Company management is planning to acquire Shanghai golden monkey in two phases. Shanghai golden monkey is one of the largest chocolate and confectionery companies in the world today. Hersey will use the acquisition to break further into the Chinese confectionery market.
This is the largest overseas purchase every sought by Hershey and the first for the firm in the world’s largest consumer market. The deal comes in the wake of a trend where many foreign companies are competing in order to come up with products that will best cater for the ever diverse tastes of the Chinese people.
According to Hershey president, John Bilbery, this deal well be a win-win situation for both companies. The strength of the Chinese company and its portfolio and overall distribution capabilities is a great opportunity for Hershey to further leverage its iconic brands. One thing that is for sure is that both companies will benefit from the deal at the end.