Kraft agreed to sell its pizza business for US$3.7bn in cash, to smooth its now-approved bid to buy confectionery giant Cadbury. Analysts have also said that such a deal with Nestlé effectively took out one of Kraft’s major competitors in the Cadbury race.
Nestlé has called its new buy “an excellent strategic match”, as it propels it into the leading spot for frozen pizzas in the US, where previously it was only a small time player. Knowledge gleaned from the US will also be used to inform pizza-making in Europe.
The move has been questioned by some analysts and commentators, as it appears to contravene Nestlé’s expressed strategy of focusing on health and wellness.