Hershey buys SGM stake

The Hershey Company, a global sweet maker, announced on Friday that it has completed the initial closing and acquired an 80 percent stake in the Shanghai Golden Monkey Food Joint Stock Co (SGM), a Chinese private confectionery company.

Hershey's wholly owned subsidiary, Hershey Netherlands BV, acquired 80 percent of the total outstanding shares of SGM at a price of 2.417 billion yuan ($394 million). The remaining 20 percent of the shares of SGM will be acquired by Hershey Netherlands at a second closing, which is scheduled to occur one year later at a price of 604.2 million yuan.