Nestlé has won the battle to purchase Pfizer’s nutritional business for $11.85 billion.
The sale follows Pfizer’s decision to sell its nutrition and animal health divisions to focus and invest in its pharmaceutical business.
Ian Read, Pfizer CEO, says the deal with Nestlé is “consistent with Pfizer’s intention to generate the greatest value for shareholders”.
Analysts had previously predicted a deal would be in the region of $10bn for the division which generated sales of $2.4bn last year.
It’s expected Pfizer’s veterinary division will be generate a higher fee than the nutritional business after its revenue totalled $4.2 billion in 2011. Novartis has already reportedly had a $16bn offer rejected by the company with Bayer also allegedly hoping to secure an $18bn deal.
Industry analysts now predict the generated revenue from the sales of the two divisions may be used to fund future large scale acquisitions such as Bristol-Myers Squibb and the Abbott pharma spin-off.
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