Nestle SA to Buy Pfizer Inc. (PFE)'s Infant Nutrition Unit for $11.9 Billion
4/23/2012 6:54:27 AM
Swiss food group Nestle is to buy U.S. drugmaker Pfizer's baby food business for $11.85 billion, beating out French rival Danone in the battle for dominance of fast-growing emerging markets. The world's biggest food company had to dig deeper than expected into its ample pockets to win the high-stakes fight for Pfizer Nutrition, which makes 85 percent of its sales in emerging markets. "The price tag is high, however Nestle is securing a high growth/margin business with high exposure in the emerging markets. China will become the number 3 market for Nestle overall," said Vontobel analyst Jean-Philippe Bertschy.