Nestle (NESN.SIX) has agreed to purchase 60% of Hsu Fi Chi International (AS5.SGX), a Chinese snack and candy producer, for US$1.7 billion, Bloomberg reported. The world’s largest food company offered Hsu Fu Chi a deal valuing the firm at 8.8% above the closing stock price on July 8. It will leave the controlling Hsu family with 40% of the post-acquisition company. Nestle aims to tap the firm’s wide distribution network and large number of point-of-sales in China, particularly for confectionary. The purchase is only Nestle’s second acquisition in the China market, following its 60% stake in Yinlu Foods Group, a beverage maker, in April of this year. Nestle’s CEO, Paul Bulcke, has said that he hopes his firm derive 45% of total revenue from emerging markets by 2020, up from around 33% today.