GCB Cocoa Singapore Pte Ltd (GCBCS), a subsidiary of the Petaling Jaya, Malaysia-based Guan Chong Berhad, has entered into an agreement with the Netherlands’ Schokinag Holding BV to acquire the Dutch company’s entire stake in Germany-based Schokinag Holding GmbH (SHG) for € 29.93 m.  

In addition, an amount of € 2.3 m will be paid by GCBCS to Schokinag Holding which in turn will contribute the same amount to SHG’s free capital reserve for working capital funding purposes. The purchase price for the sold shares and the additional working capital funding will be paid in two tranches. Upon completion of the proposed acquisition, SHG will become a 100%-owned subsidiary of GCBCS. The proposed acquisition is expected to be completed within the first quarter of 2020.

Located in Mannheim, Germany, SHG’s industrial chocolate plant has an annual capacity of 90,000 tonnes, while its cocoa processing plant can grind 7,000 tonnes of cocoa beans into cocoa mass per year.Schokinag is engaged in the manufacture, sale and distribution of industrial chocolates, including chocolate couvertures, from liquid to solid, in various sizes, shapes and packaging types, and liquid compounds.

“The proposed acquisition is part of the group’s global expansion strategy, to expand our presence to Europe and position the group to target new growth opportunities in the world’s largest chocolate consuming market. Through the exercise, the company expands its product range into the downstream industrial chocolate B2B market,” Guan Chong said in a stock exchange filing. With a grinding capacity of 200,000 tonnes of cocoa beans per year, Guan Chong Berhad is one of Asia's largest producers of industrial chocolate, cocoa powder and cocoa butter. The holding exports around 90 % of its production volume to more than 60 countries.