Mondelez International has agreed to acquire 80% stake in Vietnam-based Kinh Do's snack business for $370m, in order to strengthen its presence in emerging markets.
The transaction includes the acquisition of Kinh Do's two production plants and distribution network.
The acquisition, which is subject to Kinh Do's shareholder approval, is expected to be completed in the second quarter of 2015.
Additionally, Mondelez will have an option to buy the remaining stake of Kinh Do's snack business a year after the completion of the current deal.
Commenting on the acquisition, Mondelez Asia Pacific, Eastern Europe, the Middle East and Africa Operations president Tim Cofer was quoted by Reuters as saying: "It's a perfect fit for our Asian growth strategy.
"The opportunity to continue to invest in high growth emerging markets in the core categories where we compete is fundamental to our growth strategy."
Kinh Do processes agricultural products and foods in Vietnam. It produces confectionery products, including biscuits, buns, cakes, moon cakes, ice cream, snacks, and chocolates under the Kinh Do, AFC, Cosy, Moon Cake, Solite, Scotti, Merino, Celano, Korentc, Sachi, Slide, Wel Yo, and Wel Grow brands.
Image: Mondelez to acquire majority stake in Kinh Do's snack business. Photo: courtesy of SOMMAI / FreeDigitalPhotos.net.
