Nestlé’s US$10.3bn deal for US-based Ralston-Purina Group (RAL) will bring immediate cost and revenue savings as well as increased market share in the competitive US$33 billion global pet food market, according to Nestlé’s chief financial officer, Mario Corti.
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Corti said Nestlé should realize about US$260m a year in cost-saving synergies, to be achieved within three years of the deal’s completion, which is likely to come in the second half of 2001. He also confirmed that Nestlé does not foresee any regulatory hurdles for the deal, given the wet food/dry food combination of the two companies. Ralston’s chief executive, Patrick McGinnis, is likely to be retained to run the combined group in the US.
