Posts Tagged ‘candy’
DOWNTOWN — Nestle fueled speculation about a shift in the global confectionary market Tuesday after it announced a $3.7-billion deal that would put its Glendale-based USA division in charge of major frozen pizza brands to be acquired from Kraft Foods.
The agreement, which would involve a cash purchase of North American frozen pizza labels DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio, came as Kraft is preparing to sweeten its third offer to purchase British candy maker Cadbury.
Nestle’s proposed purchase of the pizza businesses, which is pending approval from Canadian and American regulatory authorities, will give Kraft additional cash resources as it bids for Cadbury.
Nestle said Tuesday it would not pursue or participate in a deal to purchase the British confectioner.
The agreement with Kraft comes a day after Nestle announced it would sell its 52% stake in Swiss ophthalmology firm Alcon for about $28 billion.
Combined, the moves will allow Switzerland-based Nestle to refocus on its food and beverage operations, the firm said.
“The acquisition brings leadership in the frozen pizza category, where Nestle only had a minor presence until now, and builds on Nestle’s existing pizza know-how and operations in Europe,” the firm said in a statement.