:. Food Industry News

Categories: Mergers and Acquisitions

South Korea: Lotte Buys Belgium's Guylian for $164 Mln

Source: Reuters
23/06/2008

Seoul, June 23 - South Korea's Lotte Confectionery Co Ltd will acquire Belgian chocolate maker Guylian NV for 105 million euros ($164 million), marking its debut in the European premium chocolate market, Lotte said on Monday.

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Lotte, South Korea's biggest snack company, signed a contract on Saturday under which it will purchase a 100 percent stake in the Brussels-based company, which competes with Italy's Ferrero Rocher and Switzerlands' Lindt.

"With the acquisition of Guylian, Lotte is aiming to make a successful entry into the premium gift chocolate market," Lotte said in a statement.

The deal will be conducted jointly with Japan's Lotte Co Ltd, but the South Korean company did not elaborate on how the Japan-based firm would help with the acquisition.

Guylian has an annual production capacity worth about 300 billion won ($291.1 million), and sales networks in nine markets ranging from Europe to the United States.



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