China's Hsu Fu Chi says in talks with Nestle for possible deal

Hsu Fu Chi International (HSFU.SI), a Singapore-listed Chinese maker of candies and pastries, has engaged in preliminary talks with Nestle S.A. (NESN.VX) for a potential deal, the company said on Monday.

“The company...has engaged in preliminary confidential discussions with Nestlé S.A. in relation to a possible transaction relating to the company, which may or may not lead to an offer being made for the shares of the company,” it said in a statement to the stock exchange.   

The company, which has a market value of US$2.6 billion ($3.19 billion), had suspended its shares on Monday.    

Analysts said it would make sense for Nestle, the world’s largest food company, to buy a firm in an emerging market due to sluggish sales at home.