Swiss food giant Nestlé has said it may sell 10% of its share of Brazil’s chocolate market and 20% of the country’s chocolate frosting segment in order to gain regulatory approval for its purchase of Brazilian confectioner Garoto.
Nestlé has made the proposal to Brazilian antitrust regulator Cade, which has vetoed Nestlé’s US$230m acquisition of Garoto and ordered Nestlé to sell the unit, reported Dow Jones International News.
Nestlé said in March that it was considering the sale of some of its local brands in order to reduce its market share and allow the deal to go ahead.
“The arguments presented constitute a solid and relevant basis for the review of the process. The company defines the proposed measures as efficient to meet Cade’s demands of greater competition, consumer satisfaction, and the maintenance of jobs in Brazil,” Nestlé was quoted by Dow Jones as saying.
Nestlé also said that an AC Nielsen study using 2001 data showed that Nestlé and Garoto would together have 38% of Brazil’s chocolate market, rather than the near 50% suggested by Cade.