Danone raises bid to $11 bn for Pfizer's infant nutrition business
20 Apr 2012
Groupe Danone (BN) SA has raised its offer for Pfizer's infant nutrition business to nearly $11 billion, as the French dairy major tries to outbid its larger rival Nestle, French news website WanSquare today reported.
Nestle, the world's largest food company, was earlier reported by several media to have submitted a bid of around $10 billion for the Pfizer unit.
Along with the European giants, US-based Mead Johnson has also entered the second round of auction for the world's second-largest infant nutrition business
Pfizer acquired the infant-nutrition division in its $68 billion takeover of Wyeth in 2009, and since early July 2011 has been exploring alternative options, including, a full or partial spin-off or sale of its Nutrition and Animal Health business, in order to focus on its core biopharmaceutical products.
Pfizer had hired Morgan Stanley and Centerview Partners to evaluate the businesses and complete any transactions in 12 to 24 months.
Pfizer Nutrition is the second-largest in the world after Nestle. It is a leader in infant and paediatric nutrition with core brands that include SMA Gold, Promil Gold, Progess Gold, and S-26 Promise Gold.