Nestle (NESN 90.13 -6.24%) JPMorgan is said to have commissioned the sale of its Chinese unit Yinlu, reports the Bloomberg news agency, citing insiders. The peanut milk business should therefore be valued at around $ 1 billion. Nestlé does not comment on rumors of possible divestments.
The world’s largest food company is working with the US investment bank to prepare the possible sale, Bloomberg writes. Among the potential buyers are Chinese food and beverage companies such as Dali Foods Group Co., Hangzhou Wahaha Group Co. and Uni-President China Holdings Ltd., the source said.
Nestlé plans to sell a majority stake in Yinlu and may keep a small stake to oversee the production of the ready-made Nescafé coffee that Yinlu co-produces in China, said one of those present. The company is currently planning to submit offers for the first round in late April or early May, but the outbreak of the corona virus could delay the process, according to the population.
Yinlu was acquired by Nestlé in 2011. The company tried to tap demand in China, but faced weak growth a few years later. On the occasion of the presentation of the annual figures, CEO Mark Schneider said that they were not satisfied with the development.
Under Schneider, Nestlé is increasingly focusing on the growth categories of coffee (coffee 131,705 0.04%), Water, pet and baby food products. By contrast, less fast-growing and lower-margin businesses are to be renovated or sold.