Nestle acquisition of Pfizer arm blocked
Nestle's bid to acquire Pfizer's infant food business in Mexico is in doubt after it was rejected by competition regulators.
Swiss food giant Nestle has had its attempt to acquire Pfizer's infant nutrition business in Mexico blocked by the country's government.
The Mexican antitrust agency, the Federal Competition Commission, voted 4-1 to block the bid on the grounds that it would give the firm too large a share of the domestic baby formula market and enable it to put up prices, Dow Jones Newswires reports.
It said the move would give the company a 71 per cent share of the market for stage one and two formula, as well as 88 per cent for stage three.
However, Nestle does have 30 days to appeal against the verdict.
The international business negotiation process had up to this point been successful for Nestle as it sought to buy Pfizer's global infant food business.
It successfully outbid Danone for the $11.85 billion (£7.44 billion) asset in April and its acquisition of the Chinese arm of the business was passed by regulators in the country earlier this month.
Posted by Ron Maverick