* Deal could be worth more than $9 bln – WSJ
* Bankers had seen Nestle as frontrunner over Danone/Mead
* Pfizer still eyes spin-off for animal health unit
April 17 (Reuters) – Pfizer Inc is near a deal to
sell its baby formula business to Swiss food giant Nestle SA
for at least $9 billion, the Wall Street Journal
reported on Tuesday.
Citing people familiar with the matter, the Journal said
Nestle appears to have outstripped Danone and Mead
Johnson Nutrition Co, who had teamed up for a bid, and
that a deal could be announced as soon as next week.
Nestle, the world’s biggest packaged food company, was
already seen as a favored bidder due largely to its deep
pockets.
Pfizer put its infant nutrition and animal health businesses
up for sale last July as it looks to focus on its core
pharmaceuticals business.
A company official said on Tuesday that no decisions have
been made and that Pfizer will be in a position to announce any
decisions this year. The company expects to complete any
transactions between July of this year and July 2013.
Regarding the animal health business, the official said a
spin-off was most likely.
A Nestle spokesman was not immediately available for
comment.
A person familiar with the negotiations said a deal was
expected “in the near future,” but not this week.
Pfizer’s infant nutrition business sells baby formula and
maternal supplements. It generates over 70 percent of its $2.1
billion in sales in emerging markets, with over a quarter coming
from China, where the $6 billion market is expected to double by
2016.
The Pfizer business competes with products from Nestle and
Danone, as well as Mead Johnson’s Enfamil and Abbott
Laboratories’ Similac.
Pfizer shares closed 1.5 percent higher on Tuesday.
