Stationery and writing instruments maker Pelikan International expects to conclude talks to buy two rivals in China totaling US$200million next year.

President and chief executive officer Loo Hooi Keat said negotiations were proceeding smoothly.

“We are talking with two parties in China: one in the hardcopy business and the other in stationery. We have already met a couple of times. (There are) Quite a lot of things to be sorted out before we can finalise as both of them are manufacturing based and not small companies, and each of them can cost Pelikan US$100 million.

“I think we can close the deal some time next year,” he told a press briefing here.

If the deal goes through, the group is expected to gain access to the distribution channels and networks, making inroads in China as well as other export and emerging markets.

Loo also said Pelikan, which has nearly completed the reconsolidation of its brand worldwide, planned to acquire the remaining 80% of Pelikan Colombia Indistri S.A. this year.