FMCG multinational Nestle is currently in negotiations to sell a number of its brands, as well as brands owned by Garoto, according to a report in Valor.
The sale is described as a requirement by Brazilian antitrust authorities to approve the merger of Nestle with Garoto, which was first announced in 2004.
Valor reports that Brazilian regulators are aiming to reduce Nestle and Garoto’s market share for choocolate in Brazil – which is currently 38.8% – and would not be favourable to the brands being sold to second-placed Mondelez, which has 31.9% market share . Mondelez, according to an article in O Globo, has already entered into negotiations with Nestle over a possible deal.
Sources cited by Valor, however, say that Nestle is still in a research phase for potential buyers, evaluating options with several competitors, and that negotiations are still far from being complete.
In Brazil, the main competitors of Nestle / Garoto are Mondelez, Ferrero, Hershey, Cacau Show and Mars.