Nestle Disallowed to use Pfizer baby food brands

April 16
7:38 AM 2013

Nestle, the Swiss food conglomerate, will be selling off assets in Pfizer's baby food business in Mexico. The baby food business was acquired from the US pharmaceutical giant last year through a US$11.85 billion deal.

According to the Federal Competition Commission of Mexico, Nestle must license the Pfizer brands for ten (10) years to any company which purchases the assets. This comes after the government agency rejected the purchase made as it give Nestle too much power in the Mexican baby food industry.

This means that Nestle would be disallowed to use Pfizer baby food brands for twenty years but it can retain the license for Pfizer's maternal products line. This line includes mutlivitamins for women and any other business not in competition with Nestle's current portfolio of brands.

Mexico is the sixth largest market for Nestle, with a market revenue of US$2.95 billion in sales in 2012 according to financial statements of Nestle. On the other hand, the size and revenues for Pfizer's baby food business in the country could not be determined. 

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