Chocolatier set to expand into Asia

Swiss chocolatier Barry Callebaut is set to acquire a 60 per cent stake in Kuala Lumpur Kepong Berhad's wholly-owned subsidiary KL Kepong Cocoa Products (KLK Cocoa) to further expand its footprint in Asia.

The deal, which is expected to close in April 2008, will allow Barry Callebaut to tap into the cocoa business in Asia and expand its presence in the region.

Barry Callebaut is one of the top world suppliers of industrial chocolate to the confectionery industry, while Malaysia-based KLK Cocoa is one of Asia's leading cocoa and chocolate manufacturers and has annual sales of RM500 million (£78.7 million).

In a statement, Barry Callebaut said: "The partnership will allow Barry Callebaut to benefit from KLK Cocoa's strong local expertise and to tap into its established cocoa business in Malaysia while KLK Cocoa will be able to leverage its business to a broader and global platform."

KLK Cocoa will change its name to Barry Callebaut Malaysia, and the management team of KLK Cocoa will transfer to Barry Callebaut, the confectioner said.

The transaction is subject to the approval of the Ministry of International Trade & Industry of Malaysia, Barry Callebaut added. Financial terms of the deal were not disclosed.