Nestle in advanced talk on $10 billion sale of its skin health unit

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Nestle in advanced talk on $10 billion sale of its skin health unit

On Thursday, the 16th of May 2019, the Swiss multinational food and drink company, headquartered in Vevey, Switzerland, had issued a statement saying that the largest food company in the world, Nestle, had entered into an advanced level of talk to sell its skin health business to a consortium, run by EQT partners at a deal worth of 10.2 billion Swiss Franc ($10.1 billion), while the food group had been shifting its focus in contrast to an altered consumers’ behavior.

Apart from that, the Vaud-based Nestle, had also added on Thursday (May 16th) that the proposed sell-off of its skin health unit to an equity firm EQT, a unit owned by PSP Investments and Abu Dhabi Investment Authority, would likely to be concluded by the second half of 2019, and the proposal had currently been seeking regulatory approval.

In the face of years of slowing growth, Nestle Chief Executive, Mark Schneider had unveiled a move last year to ditch some of its underperforming businesses including skin health unit, and, as a part of that move, Nestle CEO, Schneider had put its skin healthcare business up for sale on last September.

In point of fact, followed by the reveal of the statement, the Nestle shares had closed the day 1.75 percent higher to Swiss Franc 100.42, listed in NESN (SWX), after breaching a record all-time-high during Thursday’s (May 16th) intra-day trading.