Turkish delight over Godiva deal

Godiva is a respected brand name in the world of chocolate.

The upmarket Belgian chocolate brand Godiva is to be sold to Turkish firm Yildiz for $850m (£428m).

Current owner, US food firm Campbell Soup, put the business up for sale in August saying it did not fit with its core soup, breads and pasta business.

Yildiz owns the Ulker Group, which sells biscuits and confectionery.

Analysts said the sale price was in line with expectations while Campbell said it was "very pleased" with the money it would receive for it.

'Distraction'

Godiva generates annual sales of about $500m, the majority of them through its own-branded chain of stores.

Its distribution network is separate from Campbell's other food products.

"The sale price reflects the strength of the Godiva business," said Douglas Conant, Campbell's president and chief executive.

Analysts said the proceeds of the deal could be used to strengthen marketing of other Campbell products in fast-growing markets such as China and Russia.

"When you are trying to be a focused, disciplined grower, especially in some emerging markets, you don't really want to have side distractions," said Gregory Warren, an analyst with Morningstar.

Campbell Soup's shares rose after news of the sale - which is expected to be concluded early next year - emerged.