Nestle open to partnerships for water business -exec
Adds comment from executive on strategy for water business in paragraphs 3-6
By Richa Naidu
VEVEY, Switzerland, Nov 19 (Reuters) -San Pellegrino and Perrier owner Nestle will spend the coming months carving out its 3.3 billion-Swiss-franc water business and is open to deals and partnerships, a top executive told Reuters.
Nestle said on Tuesday it would trim costs by at least $2.8 billion by 2027 and separate its water and premium drinks business into a standalone global unit starting January 1, 2025, as it looks to drive growth under its new chief executive.
Sanjay Bahadur, head of group strategy and business development, told Reuters at the company's investor day that Nestle has not yet engaged banks to assess the water business but is "open to both internal and external partnerships."
"There's much more work to be done," said Sanjay Bahadur, head of group strategy and business development. "It requires time, it requires investment, which is why we're open to look for partnerships, because some of the privileged players might have better distribution networks."
Nestle's water business has had interest for decades, including from private equity and strategic buyers, Bahadur said.
"There are many opportunities and we're just trying to call them out (in the next couple of months)," he added. "Depending on the response we get from third parties, we will shape our decisions."
Reporting by Richa Naidu; Editing by Matt Scuffham
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