The European Commission has approved the creation of a joint-venture between Nestlé and South Korea’s Lotte Group under EU merger regulation.
The partnership will see the world’s biggest food company team up with the Korea-based diversified holding group to produce, distribute and sell food, beverage and pet care products in Korea.
The Commission concluded that the proposed acquisition would not raise competition concerns, because the joint venture has only negligible actual or foreseen activities within the European Economic Area.
Also on a significant news day for Nestlé, the company announced the opening of a food safety research centre in Beijing.
The Nestlé Food Safety Institute (NFSI) will work closely with authorities to help provide a scientific foundation for food safety policies and standards.
The support will include early management of food safety issues and collaboration with local universities, research institutes and government agencies on food safety issues.
It will also promote scientific communication and help run food safety training programmes.
“I am in no doubt that the work of the NFSI will contribute to creating shared value for Nestlé shareholders and for society in China,” said the company’s chief technology officer, Stefan Catsicas.
With food safety among the top three concerns among Chinese consumers, Nestlé is ramping up its activity in this area.