Nestlé takes majority stake in Turkish biscuit firm

Nestlé did not disclose financial details concerning the acquisition of a 51 per cent stake, which it said was part of its strategy to expand its offering of products specifically created for lower-income consumers.

"Nestlé will partner with Dogan and Balaban Gida, national producers of popular biscuit, chocolate and wafer brands, to create more affordable products for shoppers at the bottom of the pricing pyramid," the company said in a statement.

Nestlé estimated that in Turkey this segment accounted accounted for half the total confectionery sector, valued at about 3.6 billion Turkish lira ($2.34 billion) per year.

The Swiss company said the acquisition will help it gain new production capabilities - an important element, as its products targeting the low-income market are manufactured from local raw materials to minimize value chain costs.

The takeover is still subject to regulatory approval.