Nestle 11.85 billion dollars to win Wyeth milk powder price increase or less scruples

Source: Internet
Author: User
Keywords Nestle raise price take down scruple
Tags business change company giants it is join market send
Comic map of the purchase of Wyeth milk powder in one day mutation-the industry is still in the wind to send a bid to increase to 11 billion U.S. dollars, but at noon Nestle announced to 11.85 billion dollars in cash bought Wyeth milk powder.  Some insiders say the deal between the multinational food giants will change the pattern of the Chinese milk powder market.  The bid for Wyeth's Nestle was finally followed by last year's news that global pharmaceutical giant Pfizer sold its nutrition business, known as Wyeth's milk powder business, after a number of domestic and foreign companies were sent to join the bid, including Nestlé, US, Danone, Heinz, and even Mengniu. Recently, the acquisition of Wyeth milk powder competition into the white-hot.  Last week, there was news that Nestlé wanted to buy Wyeth at $9 billion, and yesterday morning it was able to raise the purchase price to 11 billion dollars to intercept Nestlé, but eventually Nestlé won the price of $11.85 billion. Information from Pfizer shows that Wyeth's 2011 sales revenue was about $2.1 billion, an increase of 15% from 2010. Why sell performance to a good piece of business?  Ianread, Pfizer's president and chief executive, said there was a significant difference between Wyeth's milk powder business and the company's core business, "and we believe that the value of Wyeth's milk powder will be maximized if it is outside the company."  Pfizer China's head of the company further said that, after stripping Wyeth's milk powder business, Pfizer will be more focused on the pharmaceutical areas of expertise, "in fact, a few years ago when we bought Wyeth, the fancy is also Wyeth's pharmaceutical business." The transaction process has to pass. China's Ministry of Commerce "the deal has yet to meet some of the usual preconditions, including approval by some regional regulators." Pfizer said the deal would be completed in the first half of 2013 if approved. Upon completion of the transaction, all Pfizer employees currently engaged in the nutrition business will be transferred to Nestle. "Approval by the Ministry of Commerce must be included in the regulatory approvals process."  "The company will soon submit the relevant application to the Ministry of Commerce of China," Ms. Ho told reporters yesterday. Will Nestlé continue to retain the Wyeth brand after the deal is completed? In this regard, Ms. Ho said she could not provide information on this.  Mr Chair said that details and the way of transfer were still to be discussed. Industry impact on domestic milk powder pressure increase China's milk powder market Investment Report showed that as of July 2010, in the Chinese milk powder market, more than the United States, the United States, Nestle, Abbott and Wyeth accounted for 16.76%, 12.06%, 10.58%, 7.29% and 4.72% respectively,  The whole of China's milk powder market in half. Dairy expert Dingmian said, Nestle sells milk powder products in China mainly in infant two or three and adult milk powder field, and Wyeth focus on the baby section, just can make up for nestle in the Chinese market, "foreign brand infant formula in China's market size aboutFor 35 billion yuan, and ' Nestle + Wyeth ' is expected to reach 10 billion yuan.  The acquisition will change the pattern of China's milk powder market, the domestic milk powder enterprises to bring greater pressure. "Before the Chinese foreign milk powder market is starlight Bright, later may be Zhongxingpengyue."  Beijing Zhi-Li Zhiqi, chairman of the future marketing consulting Group, said that after the acquisition, domestic small and medium milk powder enterprises will be more difficult to survive, and the dairy industry will be more and more barriers, "will be the game between giants."  For the milk powder industry's major mergers and acquisitions, whether it is the United States praise, Danone's more than the United States, or domestic milk powder boss Yili, interviewed by reporters are unwilling to make an evaluation.  The market influence the price of milk powder increase less scruples Shangjian, a researcher in the food industry, said that for domestic consumers, the acquisition on the one hand to improve the overall quality of milk powder, but on the other hand, Nestlé after the acquisition of Wyeth market share will be greatly improved, the future rise may be more unscrupulous. In recent years, including Wyeth, Nestle, and other foreign milk powder rising prices. Statistics show that since the 2008 melamine incident, the foreign milk powder has repeatedly price increases, some foreign brands of milk powder prices rose about 50%. This month, Nestle milk powder has just announced a price increase of 10%.  And foreign milk powder frequently compared to price, domestic milk powder in the prices are rarely rash. Newspaper reporter Hu Feihong
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