Nestle is buying Kraft Foods’ North American frozen pizza business for $3.7 billion and ruled out an offer for Cadbury
–(www.FinancialNewsUSA.com)– 01/05/2010 – Mergers and Acquisitions industry news provided by Financial News USA. The world’s biggest food group Nestle is buying Kraft Foods’ North American frozen pizza business for $3.7 billion and ruled out an offer for Cadbury, it said on Tuesday.
Cash-rich Nestle, which this week sold a further 52 percent stake in eye care group Alcon [ACL.N 154.98 — UNCH (0)] to Novartis for $28.1 billion, said the United States was the largest pizza market in the world with sales of about $37 billion.
In a separate statement, the maker of Nescafe coffee, KitKat chocolate bars and Maggi soup also ruled out making or participating in any formal bid for Britain’s Cadbury [CBRY.L 771.5 -33.50 (-4.16%)].
The Kraft [KFT 27.43 — UNCH (0) ] pizza business includes brands like DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio.
Nestle said synergies were estimated at 7 percent of sales and would be fully realised within five years. About Financial News USA
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