China clears Nestle’s $11.85-bn deal for Pfizer's baby food business
03 Nov 2012
China's regulator this week approved Nestle's $11.85 billion acquisition of Pfizer's infant-nutrition unit, a deal if passed by other countries would strengthen the Swiss giant's position in emerging markets, including India.
Speaking at the inauguration of Nestle's health-science institute in Lausanne, Switzerland yesterday, Paul Bulcke, CEO of the Vevey, Switzerland-based company said the Chinese regulator approved the deal this week.
Bulcke added that other countries have still to approve the transaction, but the Chinese nod was "a big one."
The deal has already been approved by the Indian regulators, where Nestle has been present in the country for over a century.
Analysts have speculated that Nestle may have to sell up to 30 per cent of the Pfizer businesses in order to receive approval from regulators in emerging countries and South America and Europe.
In April, Nestle agreed to acquire Pfizer Nutrition, the nutrition business of global drug major Pfizer, for about $11.85 billion, after beating rivals that included French food giant Danone and US-based Mead Johnson. (See: Nestlé to acquire Pfizer's nutrition business for $11.85 billion)
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.