logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: Pfizer Close To Selling Infant Nutrition Business To Nestle

Drugmaker Pfizer Inc. (PFE) is close to a deal to sell its infant nutrition business to Nestle SA (NSTR.L, NSRGY.PK) for more than $10 billion and a deal may be announced as early as Monday, reports said.

The purchase will enable the Swiss food giant to expand its formula business worldwide with particular benefit in China. China is one major market where Nestle does not have a leading marketshare.

Baby food products market is estimated to have had a value of $40.8 billion last year. Sales of baby food products are expected to grow 6 percent between 2011 and 2016.

Pfizer had said last year that it was divesting its animal health unit and infant nutrition business to focus on its core business.

Pfizer is said to be planning an initial public offering for its animal health unit. The drugmaker has hired JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley to aid in the transaction.

Reports had said last week that Pfizer was close to a deal to sell the infant nutrition unit and an announcement could be made in the coming week. While Nestle was the preferred bidder, France's Danone SA (DANOY.PK) also made a joint bid with Mead Johnson Nutrition Co. (MJN).

Danone had reportedly said last week that it is not likely to win the bid. Pfizer was believed to be keeping Danone in the bidding process. The French food giant also bid about $11 billion, Bloomberg said.

Nestle may have to sell assets in some markets to win antitrust approval for the deal. However, the magnitude of such divestments are not clear now.

PFE settled on Friday at $22.56, up $0.23 or 1.01 percet, from the previous close.

Nestle closed lower by 0.17 percent in Zurich on Friday at 57.10 euros on a volume of 14.3 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Federal Aviation Administration said several pilots complained about pointing of strong green laser beams at planes flying over Long Island. The location was around Farmingdale, during 9.30 pm and 10 pm. Searches are on to locate the exact source of the laser beam. The Federal official suspects that the beam came from a hand-held device. Discount retailer Big Lots, Inc. Friday reported an increase in income from continuing operations for the first quarter, from last year. The company also registered a surge in net income particularly as it had carried a loss from discontinued operations last year. Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items.
comments powered by Disqus
RELATED NEWS
Trade PFE now with 
Follow RTT