Chinese candy maker Hsu Fu Chi International has published a report via the Singapore Exchange, stating that the Ministry of Commerce of China has approved Nestle's acquisition of a 60% stake in Hsu Fu Chi.

Hsu Fu Chi said that Nestle plans to delist the company from Singapore Exchange and it will announce the timetable for delisting in the future.

Under an agreement previously signed by the two parties, Nestle will gain a 60% stake in Hsu Fu Chi via the transaction and the Hsu family, founder of the Dongguan-headquartered candy maker, will hold the remaining 40%. Nestle said that it plans to buy 43.5% of the shares of Hsu Fu Chi from its independent shareholders at the price of SGD4.35 per share. If the plan is approved, Nestle will then acquire 16.5% shares of Hsu Fu Chi from the 56.5% shares currently owned by the Hsu family. Nestle will pay a total of SGD2.1 billion, which is about USD1.7 billion, for the deal.

Hsu Fu Chi's products include candies, snacks made from cereal, pre-packaged cakes, and the Chinese traditional food candied fritter. Nestle said that Hsu Fu Chi's products suit the Chinese consumers' demands and habits very well, and they supplement the current product line at Nestle. In addition, these products are cost-effective and have nutritional value.

According to the latest financial results of Hsu Fu Chi, the company's operating revenue in 2010 was CNY4.31 billion, a year-on-year increase of 14%; and its net profit was CNY602.2 million, a year-on-year increase of 31%. The company has four large plants, great distribution capacity, and 16,000 employees in China.