Ferrero Rumoured To Close Deal To Acquire Nestle US

Ferrero, better known as the makers of Nutella are said to be close to closing a deal to purchase Nestle US in a $2.8 billion deal. However, the news hasn’t been officially made known. In spite of that Nestle’s stock dropped by 1.4 percent after the news broke.

According to a source, who wished not to be identified, an agreement could be signed as early as Sunday. The business, which includes the Butterfinger and Baby Ruth brands, is suffering a decline in revenue and had sales of about 900 million francs ($915 million) in 2016.

Ferrero, which has traditionally shied away from acquisitions, is expanding its portfolio beyond Nutella hazelnut spread, Tic Tac candies, and Ferrero Rocher chocolates. For Nestle, the world’s largest food company, this marks Chief Executive Officer Mark Schneider’s first major divestment and an initial step away from chocolate.

Nestle and Ferrero declined to comment.

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