The food giant company Nestle is all set to, choose its chocolate business buyer for the US very soon. The news from outside sources says that the deal is to touch $2.5 billion.
The frontrunner for the Nestle US chocolate business is Ferrero from Italy. This company is looking for a strong base in the United States. After the purchase of US-based Fannie May and Ferrara, becoming the buyer of Nestle’s U.S. chocolate business can boost its US presence like anything. Ferrero also wants to give its archrival Hershey a big threat by taking over the Nestle U.S. chocolate business.
The executive chairman of Ferrero, Giovanni Ferrero, is very keen in striking this deal with Nestle. This is why the company is ready to shell out $2.5 billion. Ferraro is popular in the market, thanks to its Ferrero Rocher and Kinder chocolate eggs. It is huge money, but that deal can give Ferrero a very strong US presence.
If Ferraro strikes the deal with Nestle, it will become the third largest confectioner in the United States, after Mars and Hershey. Nestle is looking at various strategies to improve the business of Baby Ruth and Butter-finger. The global business of Aero and KitKat will be kept to itself.