Food giant Nestle plans to pick a buyer for its U.S. chocolate business by the end of This kind of week, three sources close to the matter said on Wednesday, in a deal required to top $2.5 billion.
Italy’s Ferrero is usually seen as a front-runner, according to several different sources, who said that will the maker of the Nutella spread was keen to boost its presence inside the U.S. market, following last year’s purchase of the U.S. groups Ferrara as well as Fannie May.
One source said Ferrero raised its offer for Nestle’s business last week in an attempt to outbid rival Hershey.
“(Executive Chairman) Giovanni Ferrero is usually genuinely committed to the deal, that will’s why the group sweetened its offer to something inside the area of $2.5 billion,” the source said.
Nestle as well as Ferrero declined to comment, Hershey was not immediately available for comment.
If successful, the deal would certainly make Ferrero the third-biggest confectioner inside the United States after Mars as well as Hershey, according market research provider Euromonitor.
Nestle in June said This kind of was exploring strategic options for the business, which includes candy bar brands such as Butterfinger as well as Baby Ruth, as well as had sales of more than $900 million in 2016. This kind of is usually keeping the rest of the global business, which includes KitKat as well as Aero.
Ferrero, which also makes Ferrero Rocher pralines as well as Kinder chocolate eggs, is usually run by Giovanni Ferrero, whose grandfather founded the firm in 1946 inside the modest Italian town of Alba, in Piedmont.
For many years Ferrero relied on internal growth yet began producing acquisitions after Giovanni became the company’s sole CEO in 2011 following the death of his brother.