Nestle to buy Pfizer's infant-nutrition business
Source: AP-Excite
By JOHN HEILPRIN
GENEVA (AP) - Swiss food and drink giant Nestle SA announced a deal Monday to acquire Pfizer Inc. (PFE) (PFE) (PFE)'s infant-nutrition business for $11.85 billion in a bid to boost sales in emerging markets.
The company based in Vevey, Switzerland said the acquisition would "enhance its position in global infant nutrition" because 85 percent of the Pfizer Nutrition unit's sales is in emerging markets, many of which have large, fast-growing populations.
The deal would particularly help Nestle to boost growth in China and maintain its position as one of the world's largest sellers of infant formula. It is subject to regulatory approval, however, and Nestle, since it already sells so much infant formula, may face some antitrust hurdles to complete the deal.
Nestle's shares fell 3 percent to 55.30 Swiss francs ($60.71) after the Zurich exchange opened.
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Nestle's CEO Paul Bulcke speaks during the general meeting of one of the world's leading food and beverage company, Nestle Group, in Lausanne, Switzerland, Thursday, April 19, 2012. (AP Photo/Keystone, Jean-Christophe Bott)