Mumbai: Hershey Co., the largest US chocolate maker, said it will buy a 51% stake of India’s Godrej Beverages & Foods Ltd. as part of its expansion plan in Asia’s fourth-biggest economy.
The company will pay $60 million for the stake, Thaddeus Jastrzebski, Hershey’s vice president for international finance and planning told reporters here on 3 April.
Hershey will buy 40% held by IL&FS Investor Managers in Godrej Beverages, which is a unit of Godrej Industries Ltd., the companies said in a statement in Mumbai, where Godrej is based.
Godrej Industries will own 43% in the confectionery and snack foods joint venture with Hershey, Pennsylvania-based Hershey Co., according to the statement. Godrej Beverages will be renamed as Godrej Hershey Beverages & Foods Ltd.
Shares of Godrej Industries rose Rs5, or 3.4 %, to Rs151.95 a share at 12:09 p.m. local time on the Bombay Stock Exchange.