Friday, April 13, 2007

Nestle takes over Gerber for $5.5 billion!!

Nestle, who needs no introduction, the world's largest food company is on the way to get more larger by buying the baby food giant Gerber for $5.5 billion to be paid in CASH.

Gerber, currently owned by Novartis, a Swiss pharmaceuticals company has been famous for its baby ads.

This deal was expected since a long time, as Nestle had announced a deal to purchase Novartis Medical Nutrition.

Nestle has been the market leader in Europe, Asia and Latin America. But, the baby food market of around $900 million a year i.e. around 81% of the total market, was under Gerber.

Nestle at present has the control of around $2 billion a year market in America for its unique infant formulas.

“The acquisition of Gerber from Novartis would be a positive for Nestlé in our view,” an analyst at J.P. Morgan, Arnaud Langlois, wrote in a note to investors in January.
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