Nestlé and Danone submit bid for Pfizer's infant nutrition unit
Nestlé and Danone have submitted bids for Pfizer's infant nutrition unit, which puts Europe's leading food companies in competition for the division.
A tax-free spin off the unit by Pfizer may also be an option. In September, it was reported that Pfizer has delayed the sending of sales documents to potential buyers in order to evaluate a spin-off.
As of June, Nestlé had $8.3bn in cash, cash equivalents and short-term investments, more than twice compared to Danone's $3bn, Bloomberg reported.
The sale of the unit, which posted sales of $1.9bn in 2010, is expected to fetch as much as $10bn.
Potential buyers may face antitrust issues in some markets. With the Pfizer division, Nestlé would hold more than 60% of the market for baby formula in Australia, Mexico and elsewhere, while Danone would hold 80% of the market in the UK, Turkey and New Zealand and more than 70% in Ireland and Australia
Pfizer gained ownership of the infant nutrition unit in 2009, when it acquired pharmaceutical company Wyeth for $68bn.
In July, Pfizer said that it plans to sell its infant nutrition unit and animal health division, following its review of businesses that are not associated with drug discovery.
Related Insight
Suppliers Directory
Processed Foods Bakery & Cereals Confectionary Pasta & Noodles Savory Snacks Sweets & Desserts
Condiments & Ingredients Ingredients Oil & Fats Sauces & Spreads Soups
Chilled & Deli Food
Special Foods Baby Food Health Foods
Food Technology Process & Production IT & Software Packaging Sustainability
Marketing & Regulatory Regulatory & Food Safety Supply Chain Retail
Baby Food Intelligence
Until recently, the beverages market was divided simply between alcoholic and non-alcoholic beverages. As consumers’ tastes grew more sophisticated and demand surged for a variety of beverage options catering to lifestyle changes and health concerns, the beverages industry has responded with a dizzying array of options to choose from. This report focuses on the U.S. and world markets for beverages across several broad categories. For the purposes of this study, TriMark Publications has divided the global beverages markets into the following product segments include: 1) alcoholic beverages such as wines, beers and spirits; 2) non-alcoholic beverages such as bottled water and milk; 3) brewed beverages such as coffees and teas; 4) carbonated beverages such as sodas and soft drinks; 5) non-carbonated juice products both fresh and pre-packaged; and 6) energy drinks which are generally caffeinated beverages in both carbonated and non-carbonated forms. For each market segment, this study presents the latest information on size, growth rates, sales projections and factors influencing growth in the U.S. and internationally. Buy online from $449
Comments may be moderated for spam, obscenities or defamation.