Lotte finalizes deal for Kazakh confectionery firm

Korean confectioner Lotte has overcome regulatory hurdles to acquire a 76% stake in Kazakhstan-based firm Rakhat.

The $157m deal was announced in July, but was approved by regulators yesterday. In future, Lotte intends to acquire the remaining 24% stake.

Rakhat is the market leader in the US $1.93bn Kazakh confectionery market with a 10% market share.

Lotte’s latest acquisition adds to a number of high profile additions in the past decade, including a $164m deal for Guylian in Belgium in 2008, an estimated $250m buy of Wedel in Poland from Kraft Foods in 2010 and a $18m outlay for Pakastani firm Sulemanji Esmailji in the same year.

Lotte said in a filing to the Korea Exchange that it was aiming to expand into the Commonwealth of Independent States (CIS) through its entry in Kazakhstan.

The company recently spelled out its international growth strategy in its first half results earlier this month.