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Nestlé CEO Peter Brabeck said Thursday he planned to closely scrutinize the company’s stakes in US eyecare group Alcon and French cosmetics group L’Oreal after leaving his post as CEO and becoming chairman of the group in April next year. Two industry bankers recently said that Nestlé had made it known that they were willing to exit Alcon, as they considered it “non-core.”
Nestlé currently holds a 75% stake in Alcon and a stake of about 25% in L’Oreal.
The first banker said that New Jersey-based Johnson & Johnson and Alcon had held initial discussions about the possibility of the former acquiring Nestle’s stake earlier this year. J&J declined to comment. The banker added that Connecticut-based GE could be interested.
A second banker who had previously worked with Nestlé, said one company that would be interested in Alcon is New Jersey-based Becton, Dickinson and Co, as it would be attracted by Alcon’s ophthalmic surgical instrument line. “If Alcon went on the block they would take a look at them,” he said.
The Alcon management was “teed up for a buyout and of course the management is always excited when we talk to them about that,” the banker added.
If Nestle proceeds with such a sale, it may not be the only eye care business on the market. This news service reported earlier this month that Novartis was rumored to be looking to divest its eye care unit CIBA Vision.
In October 2001, Nestlé took its minority stake in Alcon public. At the time Alcon common shares represented approximately 25% of Alcon’s common shares, including an over-allotment option to be granted to the underwriters. Credit Suisse was the global coordinator for this offering.
Alcon had sales of approximately USD 4.9bn in 2006. Alcon researches, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye.
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