EU gives Nestlé green light for water joint venture

Nestlé: EU gives the green light to proposed water joint venture Keystone-SDA

The European Commission has given the go-ahead to Nestlé’s proposed joint venture in the water sector with the Swiss food giant's partner, US investment firm Platinum Equity.

The EC states that it has “approved, under the EU Merger Regulation, the joint acquisition of Nestlé Waters of Luxembourg by Platinum Equity, LLC (together with its affiliates), USA, and Nestlé”, according to a statement issued by Brussels on Tuesday. “The transaction mainly concerns the supply of bottled water”, as well as other beverages.

According to the Commission, the deal, which is set to create the Peranel joint venture, “would not raise competition concerns, given that the companies are not active in the same market or in related vertical markets”.

When contacted by the AWP news agency, Nestlé had not yet responded.

Last July, the Vevey-based giant announced that it had found this US financial partner for Nestlé Waters, its water division, which had been hit by the illegal filter scandal and from which it had been seeking to divest since 2024.

The Swiss group plans to sell half of its bottled water business, comprising “more than 30 brands whose products are sold in 120 countries”, such as S.Pellegrino, Source Perrier and Acqua Panna.

The website peranel.com, which is already live, lists these brands, such as the Western Swiss brand Henniez, the French brands Perrier, Vittel, Contrex and Hépar, as well as Sohat in Lebanon and Buxton in Britain.

At the end of July, Nestlé expected the deal to be finalised in the first half of 2027. The transaction values Peranel at €4.9 billion (4.5 billion francs). Furthermore, Nestlé expects to receive approximately CHF2.8 billion in the first half of next year.

Translated from French, reviewed by an English Department journalist.