|KDC today signs agreement with Mondelez to sell 80 per cent of its snack business. — VNS Photo
HCM CITY (VNS) — Mondelez International Company, the US-based maker of Oreo cookies and Ritz crackers, is set to become a majority stakeholder in the snacks business of confectionery giant Kinh Do Corporation.
It will invest over VND7.8 trillion (US$370 million), equivalent to an 80 per cent stake.
The proposal will be placed before the shareholders of Kinh Do Corporation at an extraordinary general meeting on December 1, and, if approved, the sale will go ahead in the second quarter of next year.
Mondelez would have the option of buying the remaining 20 per cent a year later, the two companies said.
Viet Nam News was unable to obtain sales figures for its snacks business from KDC.
KDC said before the stake sale it would complete its previously announced restructuring to consolidate its snacks division into one entity without the ice cream and dairy divisions and bakeries.
Its chairman, Tran Kim Thanh, said the stake sale would enable his company to implement its strategies better and quicker in its other business segments.
Tim Cofer, Mondelez International executive vice president and president, Asia Pacific and Eastern Europe, Middle East and Asia, said his company already had a small presence in the country and "this will be a step to change in size and scale the snack business in Viet Nam"
Speaking to Viet Nam News, he said it was too early to provide specific details, but revealed that his company would initially focus on developing Kinh Do's products, including moon cake.
Mondelez decided to invest in KDC's snack business because it had good brands and a factory each in the north and south.
Furthermore, KDC had a good distribution system for both traditional and modern products and managerial talent, he added.
The US company has a presence in 160 countries while KDC announced restructuring plans a few months ago that includes entry into the noodles, coffee, and cooking oil businesses. — VNS