Pfizer Inc is nearing closure of a deal to sell its
infant-nutrition business to the Swiss food conglomerate Nestle SA for $9 billion.
According to a report in the
The Wall Street Journal, Nestle appears to be beating out a joint bid from Groupe Danone and Mead Johnson Nutrition Co.
The deal would be one of the largest this year and could be announced as early as next week, the report added.
Nestle is one of the world's largest sellers of infant formula and may face some antitrust hurdles to complete the deal. It would likely have to sell assets in certain markets to win regulatory approval.
Pfizer had said in July 2011 that it would divest its infant-nutrition business and a separate animal-health business unit. The
company may be moving forward with shedding both units.
It has reportedly picked JPMorgan Chase, Bank of America and Morgan Stanley to manage an initial public offering of the animal-health division, according to the newspaper.
But the animal-health unit could also still be put up for sale, following reports that Novartis AG and Bayer AG had recently considered making offers.
Pfizer, the world's largest drug maker, has been shedding its non-core businesses as it moves to focus on develop new prescription drugs. Last year it was hit by the
expiration of its patent on Lipitor, the cholesterol fighter that's the biggest-selling drug ever to go off patent,
It sold its business unit that makes drugs in capsule forms to KKR & Co last August for $2.4 billion. Some investors are hoping Pfizer will sell even more businesses, including its unit that sells Advil and other non-prescription consumer health products.
Shares of Pfizer rose 33 cents to close at $22.31 on Tuesday.