Emulsifier YN - The unique ingredient in chocolate production.
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The Chinese commerce ministry allowed Nestle to take a 60% stake in the firm following its €1.2bn in July this year.
Hsu Fu Chi said in a statement that its current CEO and chairman, Hsu Chen, would continue to lead the company.
Hsu Fu Chi was founded in 1992 and is the second biggest confectionery player in China, according to Sanford Bernstein. In 2010, it had reported sales of €566m.
The move sees Nestle boost its profile in China after it acquired a 60% stake in food maker Yinlu Food Group in April.