Home Economy Nestle wins EU approval to buy Novartis nutrition business

Nestle wins EU approval to buy Novartis nutrition business

By Xinhua

Brussels : The world's biggest food and beverage company Nestlé has won conditional approval from the European Union (EU) to buy the nutrition business of pharmaceutical giant Novartis.

The European Commission (EC), the EU antitrust watchdog, had said earlier that the proposed transaction could significantly impede competition in the markets for healthcare nutrition delivered to patients via tubes in France and Spain.

In France, the transaction would bring together two of the main suppliers and create a clear market leader, while in Spain it would strengthen the current leading position of Novartis, EC found.

After Nestle agreed to sell the entire healthcare nutrition business of Novartis in France and its own healthcare nutrition business in Spain, the Commission concluded that this would be sufficient to address the competition concerns.

Nestle and Novartis are both Swiss companies. The deal, worth 1.9 billion euros ($2.5 billion), could make Nestlé the second-largest player in the field of health care nutrition.