Nestle in talks over $10-billion sale of skin health unit as company shifts its portfolio

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Nestle in talks over $10-billion sale of skin health unit as company shifts its portfolio GlobeBusiness

Nestle chief executive Mark Schneider put the skin health unit up for sale last September as the group moved to ditch underperforming businesses, following years of slowing growth as many consumers favoured fresh foods over packaged goods.Nestle was also under fire from activist investor Daniel Loeb’s Third Point, which asked for a faster overhaul in July. The U.S. hedge fund has since generated very good returns on its Nestle stake, leading Loeb to praise Schneider’s performance this year.

The unit, which will be rebranded Galderma, is expected to post earnings before interest, tax, depreciation and amortization of roughly 550 million Swiss francs this year and of more than 600 million next year, a person close to the matter said. Schwendimann said Nestle was under no pressure to announce a new share buyback given that the current one runs until the end of the year.

Under former chief executive Paul Bulcke, skin treatments were part of Nestle’s push into higher-growth health products to counter a slowdown in its traditional food business, but performed poorly, leading to one-off costs and restructuring.

 

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globebusiness The branch of capitalism FINANCIAL CAPITALISM, labeled by those who know things and what is going on, is literally and factually destroying world's economy. They do nothing but push the financial capital around the world,as they make billions and trillions in loot. Where is govt?

globebusiness The capitalists do not create/build any new business, but keep selling the old ones to one another and making fortunes never seen in history of this planet. I sell you mine if you sell yours to him and he is going to sell his to that rich bastard who in turn will sell his to me.

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Shift from stocks boosts CPPIB’s returnsCanada Pension Plan Investment Board posted a return of 8.9 per cent in the most recent fiscal year globebusiness Did they shift their holdings out of American Immigration Detention Centres and for-profit prisons? Maybe you can ask about that the nest time you interview someone from CPPIB.
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