Nestle moves to buy Pfizer's baby food arm
The world's largest food manufacturer beat off reported interest from Danone with a deal worth US$11.9bn. But has the Swiss food giant paid too much?
Nestle has won through in the battle to acquire Pfizer's baby food business, securing an US$11.85bn deal that will see the world's largest infant nutrition group extend its lead in this fast-growing category. However, with a hefty price tag attached, the deal has not been warmly welcomed by investors. Katy Askew reports.
Announcing its US$11.85bn acquisition of Pfizer's baby food unit this morning (23 April), it was interesting to note that Nestle took a slightly unusual tact in presenting the deal multiples.
Nestle has agreed a deal to acquire the infant nutrition business of US pharmaceuticals group Pfizer for US$11.85bn.
Anticipation is mounting over the likely sale of Pfizer's baby food business, with an announcement widely expected next week.
US pharmaceutical group Pfizer has insisted it will get maximum value for its shareholders out of any move to separate its infant nutrition business.
Heinz chief executive Bill Johnson has suggested the US food giant would be interesting in buying any assets that could emerge if Pfizer's infant nutrition unit is sold.
Danone and Nestle have remained silent over reports that each company has submitted competing preliminary bids for Pfizer's baby food business.
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