Nestle to weigh 1 billion dollars sale of local Chinese brands | Progresiv
Nestle SA is weighing options including a sale for two ailing Chinese units after years of attempting to turn them around, people familiar with the matter said. 
The food giant has been reviewing its ownership of Hsu Fu Chi, a local confectionery brand, and Yinlu, known for its ready-made Chinese porridge, according to the people. It is seeking more than 1 billion dollars for its controlling stakes in the two companies, the people said, asking not to be identified because the information is private.
Nestle acquired both companies in 2011 as it sought to tap burgeoning demand in China, only to find itself confronted with sluggish growth a few years later. Since becoming chief executive officer in 2017, Mark Schneider has been weeding out the Swiss company’s portfolio, jettisoning assets such as U.S. chocolate brands, a dermatology business and a life insurance unit for about 15 billion dollars total.
Nestle, which makes Nespresso coffee and Gerber baby food, has made almost two dozen divestments under Schneider. It could opt to sell only part of its stakes in one or both of the Chinese units, according to one of the people. (www.bloomberg.com)
