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5/15, 5:22 PM (Source: TeleTrader)
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Nestle to sell skincare business for up to $10B - report

Swiss consumer goods giant Nestle S.A. is planning to enter negotiations with a consortium ran by privacy equity firm EQT to sell its skincare business, the Financial Times reported on Wednesday, citing sources familiar with the plans. According to the report, the deal could be worth up to $10 billion. Apart from EQT, consortium led by Advent International and private equity firm KKR reportedly also expressed interest in Nestle's skin health business.

The company's skincare operations were formed from Swiss dermatology firm Galderma, which Nestle ran jointly with L'oreal until 2014, when the Swiss giant took full control of the business. In exchange, L'oreal bought Nestle's €2.6 billion worth of shares of its stock. Galderma includes two main lines of operations: consumer products under the Cetaphil brand and medical solutions for problematic skin under the Proactiv brand.

Nestle's decision to sell its skincare business comes amid Chief Executive Officer Mark Schneider's plans to focus the company's operations around its fastest growing businesses such as coffee, water, and petcare.

Breaking the News / SS