Nestle buys Pfizer's baby food unit for $11.85bn
By John Reynolds, marketingmagazine.co.uk, Monday, 23 April 2012 09:06AM
Nestle has agreed to buy Pfizer's baby food division for $11.85bn, increasing its hold on the Chinese market and boosting its dominance over French rival Danone.
The purchase of the division (announced today 23 April) will particuarly help to boost sales in China, where the company has lost market share in the past five years after withdrawing two varieties of its Neslac milk powder over concerns it contained excessive iodine.
Paul Bulcke, Nestle chief executive, said: "Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world’s leading nutrition, health and wellness company.
"The combined entities will enable us to deepen our engagement with consumers, offering them a wider choice of nutritious food to ensure their children make a healthy start to a healthy life."
Nestle is thought to have beaten Danone to the purchase of the unit, as the two companies grapple for pre-eminence in the lucrative baby food business.
The acquisition is subject to regulatory approval and is expected to be completed by 2013.
Pfizer's baby food division provides products, including infant formulas Promil and SMA as well as Enercal supplements for adults, to more than 60 countries.
The unit accounted for 3.2% of Pfizer's revenues in 2011, according to its financial accounts.
Currently, Pfizer lags behind Danone and Abbot Laboratories, among others, in the infant formula market.
Follow John Reynolds on Twitter @johnreynolds10
This article was first published on marketingmagazine.co.uk
- Affiliates Executive - No. 1 Agency! GoodEgg Digital Circa £25k + Exceptional Benefits, Central London
- Digital Display Manager - Leading Agency GoodEgg Digital £Neg + Great Benefits, South East England / London (Central), London (Greater)
- Senior Marketing Director - 9-12 month FTC Comedy Central £competitive, Camden, London (Greater)
- RTB Display Campaign Executive - Agency trading desk Ascent Solutions £27,000 + Fantastic Corporate Benefits Package, London (Greater) / London (Central), London (Greater) / London (North), London (Greater) / London...
- Digital Account Director Ascent Solutions Up to £50,000 + excellent benefits package, London (Greater)
- Philips launches campaign for app-controlled lightbulbs
- Sorrell warns of Scotland becoming an 'outlier' and the UK 'diminished' by a Yes vote
- Publicis boss Maurice Lévy to step down in 2017 amid board shake-up
- 18 Feet & Rising wins Skoda digital brief
- Sometimes collaboration, not innovation, can be the key to winning campaigns
- Virgin Trains spends £8 million on advertising to refocus on its brand