Nestlé reportedly ready to pay $10 billion for US pet food group

The Swiss-based food giant, Nestlé, is reportedly on the verge of taking over the United States pet-food company, Ralston Purina, in a deal worth $10 billion (SFr16.3 billion).

This content was published on January 15, 2001 minutes

The Wall Street Journal said on Monday that a deal could be announced within days. Neither company would comment on the report, which quoted unnamed sources close to the companies.

It is believed that Nestlé is offering nearly $33 for each Ralston share - roughly 34 per cent more than the St Louis-based company's closing stock price on Friday of $24.63.

The acquisition would give Nestlé a commanding presence in the US pet-food market, with both firms holding some of the best-known brands in the pet food business.

But a deal could raise anti-trust questions, forcing Nestlé to divest itself of some brands to win US regulatory approval.

The Wall Street Journal says Ralston currently holds a 27 per cent share of the US's $4.3 billion dog-food market, compared to Nestlé's 12 per cent share. The two firms together account for 46 per cent of the cat-food market, with Ralston commanding 33 per cent.

Analysts say Nestlé is keen to expand in the pet-food market, as it is one of the strongest growing segments in the food industry. Sales in the US grew by nearly five per cent last year.

Nestlé's per-food brands include "Friskies" and "Alpo". Ralston's top brand is "Purina Dog Chow".


In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?