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Nestle launches strategic review, $20.8B buyback

Published 06/27/2017, 12:13 PM
© Reuters.  Nestle launches strategic review, $20.8B buyback
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  • Nestle (NSRGY -0.8%) says it will execute a share buyback of 20B Swiss francs, and is starting a comprehensive review of its capital structure.
  • The company is outlining further steps in its value creation model. Capital spending will be focused on high-growth opportunities such as coffee, pet care, infant nutrition and bottled water, as well as focusing on high-return geographies. It will also add focus to consumer healthcare.
  • It says it will only prioritize external growth opportunities as it fits within its targeted areas.
  • The recent exploration of alternatives for its U.S. confectionery business is in line with this approach, Nestle says.
  • The buyback (of about $20.8B) will be completed by the end of June 2020, and start July 4. Buybacks are likely to be backloaded in 2019 and 2020 "to allow the pursuit of value-creating acquisition opportunities."
  • Now read: Third Point Letter On Nestle


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