Hsu Fu Chi Will Be A Strong Fit For Nestlé’s EM Ambitions

摘要

Swiss food giant Nestlé is reportedly in talks to acquire Chinesensnack and candy producer Hsu Fu Chi . From a strategic point ofnview, the acquisition would make sense for Nestlé as the companynseeks to beef up its presence in emerging markets (EMs), particularlynin China. While Hsu Fu Chi is also rumoured to be in talks with other companies, we believe Nestlé is in a strong position to ward off thencompetition from other contenders given its massive financial cloutnand considerable cash pile. Should Nestlé decide to acquire Hsu FunChi, however, there is always the chance that the Swiss food giantnmay encounter regulatory scrutiny from the Chinese government,nwhich could frustrate its efforts to expand in the country.