Lotte Confectionery, South Korea's biggest snack maker, said Monday that it will acquire the Belgian chocolate maker Guylian for $164 million, marking its debut in the European premium chocolate market, reports a Reuters article in the International Herald Tribune.

Lotte signed a contract on Saturday under which it will purchase a 100 percent stake in the company, which competes with Ferrero Rocher of Italy and Lindt of Switzerland.

"With the acquisition of Guylian, Lotte is aiming to make a successful entry into the premium gift chocolate market," Lotte said in a statement.

Lotte Confectionery will jointly set up an investment company in the Netherlands with an affiliate, Lotte Co. of Japan, to buy Guylian from the owner, Dominique Foubert, and two other entities, according to Lotte's filing with the Korea Exchange.

Details on the Netherlands-based company's ownership structure have yet to be determined.

Guylian has an annual production capacity worth $291.1 million, and sales networks in nine markets ranging from Europe to the United States. Most of its annual sales of $125.9 million are in Europe.

As part of its global expansion strategy, Lotte is also seeking to start a holding company in China and build a plant in Russia, and expects overseas businesses to eventually represent about a fifth of its annual sales.

Last year, it created an $80 million venture with Hershey to jointly operate a chocolate factory near Shanghai.