Workers pack candy at a subsidiary of Shanghai Golden Monkey Food Joint Stock Co Ltd in Henan province. The Hershey Co plans to acquire 80 percent of SGM, with the transaction expected to wrap up in the second quarter of 2014. [Photo/China Daily]

US chocolate and candy maker Hershey says it will acquire an 80 percent stake in Shanghai Golden Monkey Food Co Ltd.

The acquisition is expected to be completed in the second quarter of 2014 and is subject to regulatory approval, according to a joint statement released by the two companies.

Hershey says it intends to build on the success of Shanghai Golden Monkey's brand and diverse product portfolio to boost sales in the country. The size of its takeover is not disclosed.

The move comes after the establishment of Hershey Asia Innovation Center in Shanghai earlier this year as the company seeks to tap the region’s growing demand and cater to different local tastes.

“Shanghai Golden Monkey's strong confectionery portfolio and distribution capabilities provides us an opportunity to leverage scale to make both companies' brands more powerful," John Bilbrey, president and CEO of Hershey, says in a statement.

Hershey says China is its fastest growing market. Shanghai Golden Monkey has factories in five Chinese cities and will remain an independent operation, reporting directly to the president of Hershey International.

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