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Nestle CEO open to doing a ‘big deal’ after cutting L’Oreal stake


Swiss beverage and food giant Swiss Food and Beverage Group CEO NestleAs it asserts its growth strategy, has indicated that it will be willing to do a big deal after reducing its share in the French cosmetics industry. L’Oreal.

CNBC spoke with Mark Schneider, the CEO of Nescafe, Kit Kat and Kit Kat’s household brand. He said that although it doesn’t feel “compelled”, it was still considering every option as part of its growth strategy.

Schneider stated to Julianna Tatelbaum that “we would be open for a large deal again.” Do we feel obliged to make one? No. Do we want to? Yes.”

Nestle cut its stake in L’OrealIt dropped to 20.1%, from 23.3% in December.

Nestle SA manufactured a KitKat chocolate bars and was arranged in London on Monday, July 26, 2021.

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Schneider stated that the company would be open to smaller deals with less regulatory hurdles, in addition to potential big-ticket acquisitions.

It is not that one priority over the other. Is it strategic? Is it culturally appropriate? He said, “And then we go to take a closer glance.”

Schneider stated that smaller deals and those of a medium size would offer higher returns in today’s market where all assets are valued fully.

“Buying at the right price, to me, is the starting point of successful M&A activity,” he continued. So it is not a change of policy. It is just a confirmation that yes we do want to grow our business, and this also includes internal growth.

Nestle has released their full-year financial results ThursdayThe report, which reported organic growth of 7.5% exceeded expectations, was published by. The year’s sales grew by 3.3% to reach 87.1 billion Swiss Francs (94.5 billion).

The company stated that it expects a modest increase of around 5% for 2022, despite ongoing cost pressures.

Nestle shares fell 1.1% during early trade.