The Philippine fast food chain Jollibee says it intends to acquire Hongzhuangyuan, a Beijing porridge store chain.
The news has been passed along to local media by Gao Chunyu, the founder of Hongzhuangyuan. Jollibee offered US$50.5 million for the acquisition. But owing to the different opinions about the stock ownership, further discussion may be needed.
According to the information from Jollibee, the acquisition is one of the company's strategies to expand its business and enter China. Having acquired 85% of the share of YongHe King in 2004, Jollibee acquired the 15% left with US$6 million in June 2007, which achieved its goal of completely acquiring YongHe King.
At present, Hongzhuangyuan owns more than 30 direct-run stores in Beijing.