Nestle Would Be Biggest Confectioner by Buying Ferrero, UBS Says
Nestle could become the biggest confectionery co. by buying Ferrero, UBS says (neutral). * With Ferrero may have ~>20% global mkt shr * Could increase sales of Ferrero’s brands in emerging mkts with Nestle distribution system * Assuming CHF22.5b purchase price, 3% cost of financing, CHF400m synergies, a deal may add 7% to EPS
NOTE Oct. 17: Nestle Made Offer to Buy Italy’s Ferrero, Repubblica Reports NOTE Oct. 17: Ferrero CEO Hasn’t Received a Takeover Bid From Competitor