Nestle could be flush with cash

|About: L'Oréal S.A. (LRLCF)|By:, SA News Editor

Nestle's (OTCPK:NSRGY) confirms that it expects to sell its skincare unit to a consortium led by EQT partners for about $10.2B

Looking ahead, the company could have more deals in the works with a sale of its lunch-meat business Herta anticipated and a review of medical unit Prometheus Laboratories ongoing.

Analysts think Nestle will use the extra funds to focus on its $7.2B rights purchase of the Starbucks brand and a new buyback program. The extra cash could also relieve pressure on Nestle to unload its 23% stake in L'Oreal (OTCPK:LRLCF).

Previously: EQT in pole position for Nestle's skin health unit (May 15)

Subscribe for full text news in your inbox