December 4, 2012
Nestlé buys Pfizer Nutrition
Nestlé has completed an acquisition of Pfizer Nutrition after the deal's approval by the "majority of markets involved."
The Switzerland-based food and beverage giant announced that its takeover of Pfizer's infant nutrition business had been completed following a recent string of regulatory green lights.
A Nestlé spokesperson revealed that the deal has been approved in more than 85% of the markets that Pfizer Nutrition operates in - allowing its closure under the terms of the April 2012 agreement between Nestlé and Pfizer.
Anti-trust authorities in South Africa, Kenya and five Latin American countries have yet to approve the deal.
According to the Nestlé spokesperson, these markets, which represent less than 15% of Pfizer Nutrition's sales, are "not material to the deal."
In early November 2012, the Chinese Ministry of Commerce (MOFCOM) approved Nestlé's takeover of Pfizer Nutrition - following in the footsteps of Indian and Brazilian anti-trust authorities. The Australian Competition and Consumer Commission (ACCC) later followed suit.
The Mexican Federal Competition Commission (CFC), however, declined to authorise the acquisition - citing concerns that the deal could lead to price increases of up to 11.5%.
Through the deal, Nestlé intends to combine Pfizer-owned infant formula brands such as S-26 Gold, SMA, and Promil with its existing portfolio.
According to the firm, Pfizer Nutrition's "strong" brand and product portfolio and geographical presence complement its own infant nutrition business.
Now that the deal is completed, the integration process is underway; including the migration of approximately 4,500 Pfizer Nutrition employees to Nestlé.
The firm was, however, unable to guarantee that no jobs would be lost.