Danone SA Wants to Sell its Medical Nutrition Unit
Danone SA, a French food-products multinational company, wants to sell its medical nutrition unit. The consumer products and dairy giant is holding meetings with Hospira Inc., U. S. pharmaceutical and medication delivery company, Swiss food giant Nestle SA and German healthcare group Fresenius SE.
Experts term the deal to be cash and stock deal and it could prove as the biggest tax inversion deals meant to avoid higher taxes in the US. The unit could be valued at nearly $5 billion.
As per Bloomberg, the unit is up for sale since May. It was valued between over 3 billion euros and $4 billion in the higher range. With the sale, Danone would be able to focus towards its food and consumer brands.
Danone, the world's largest yoghurt-maker, said that Brazil, Turkey, China and the UK contribute the maximum to the unit's sale growth. The unit deals in products including Fortimel and Nutrison, which are fortified products. These
products are meant to fight malnutrition and eating difficulties.
The other products of the unit are Nutilis and Neocate. These products are for people suffering from allergies or are undergoing medical treatment. In 2013, the unit's sale was 1.3 billion euros.
It was in 2007 when Danone entered into the medical-nutrition market. At that time, it had bought Royal Numico N. V., the Dutch maker of baby and medical foods.
After it sold its biscuits and cereal products division to Kraft Foods Inc. in 2007, it would be the Danone's biggest deal to sell off its subsidiary business.
Many other US healthcare companies have been looking out inversion as an option to escape high rate of US corporate tax.
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