Nestlé Closing In On The Acquisition Of Wyeth (Asia Pacific Food and Drink Insight)

Nestlé Closing In On The Acquisition Of Wyeth (Asia Pacific Food and Drink Insight): Recent reports have suggested that Swiss food giant Nestlé is closing in on a deal to acquire Pfizer's infant formula business Wyeth. These reports are in line with our expectations that Nestlé would emerge as a frontrunner to land the unit given the attractiveness and the financial disparity between Nestlé and a joint bid from Danone and Mead Johnson. While Nestlé is likely to run into antitrust scrutiny in a number of key markets, the acquisition of Wyeth would, without a doubt, provide a strong boost to its emerging market (EM) profile. For Danone, should it fail to acquire Wyeth, this would inevitably dent its EM ambitions, particularly given the fast-depleting pool of attractive acquisition opportunities.