ZURICH/FRANKFURT: Nestle has entered exclusive talks to sell its skin health business to a consortium led by EQT Partners for 10.2 billion Swiss francs ($10.1 billion), as the food group shifts its portfolio in response to changing consumer demands.
The proposed transaction with private equity firm EQT, a unit of the Abu Dhabi Investment Authority and PSP Investments, is expected to close in the second half of 2019 pending regulatory approval, Nestle said on Thursday.
Nestle Chief Executive Mark Schneider put the unit up for sale last September as the group moved to ditch underperforming businesses, following years of slowing growth as consumers favored fresh foods over packaged goods.
Nestle was also under fire from activist investor Daniel Loeb’s Third Point, which asked for a faster overhaul in July. The US hedge fund has since generated very good returns on its Nestle stake, leading Loeb to praise Schneider’s performance this year.
Nestle shares were up 0.8 percent at 1:15 p.m. GMT on Thursday, after hitting an all-time high earlier in the session following the announcement of the deal, which according to Refinitiv data is the second largest European private equity buyout since the financial crisis after Carlyle’s acquisition of an Akzo Nobel unit last year.
Analysts said the price tag was attractive for Nestle at an enterprise value-to-sales multiple of 3.6 times, or a multiple of roughly 20 times expected core earnings.
The unit, which will be rebranded Galderma, is expected to post earnings before interest, tax, depreciation and amortization of 550 million Swiss francs this year and of more than 600 million next year, a person close to the matter said.
“EQT focuses on quality businesses. We have a lot of good ideas (about) how to develop Nestle Skin Health into a pearl and then make our return,” EQT partner and co-head of private equity Marcus Brennecke told Reuters. “We will strengthen Galderma’s board with relevant industrial expertise to develop each of the three business units to their full potential. A couple of prescription drugs are theoretical blockbusters with large business opportunities,” he said.
ZKB analyst Patrik Schwendimann estimated the transaction would generate an extraordinary gain before taxes of around 4 billion francs for Nestle based on the net book value of 6.2 billion francs Nestle gave the unit in its 2018 financial statements.
Nestle will provide an update on how it will use the proceeds and its future capital structure after the deal closes. Schwendimann said Nestle was under no pressure to announce a new share buyback given that the current one runs until the end of the year.
Abu Dhabi in talks for Nestle business
Abu Dhabi in talks for Nestle business
Oman money supply rises 6.4% to $68.6bn in November
JEDDAH: Oman’s money supply climbed 6.4 percent to 26.4 billion Omani rials ($68.6 billion) in November, signaling solid liquidity conditions and continued growth in bank deposits, official data showed.
The increase in broad money — a measure that includes cash in circulation and bank deposits — was driven by a 12.2 percent rise in cash and demand deposits, alongside a 4.1 percent increase in savings and time deposits, the Oman News Agency reported.
The latest reading follows steady gains earlier in 2025, with money supply up 6.1 percent in the three months through August. This was supported by a 6.9 percent rise in narrow money and a 5.8 percent increase in quasi-money. The trend reflects sustained liquidity conditions and stronger deposit growth across the banking system.
The expansion in monetary aggregates points to continued liquidity and policy support for private-sector lending, as Oman advances fiscal and economic reforms under its Vision 2040 strategy.
“During the same period, currency in circulation increased 1.9 percent, while demand deposits rose 14.1 percent,” the ONA report stated.
At conventional commercial banks, the weighted average deposit rate in Omani rials declined to 2.50 percent in November from 2.73 percent a year earlier, while the weighted average lending rate eased to 5.45 percent from 5.67 percent over the same period.
The overnight interbank lending rate averaged 3.92 percent in November, down from 4.56 percent a year earlier, reflecting a decline in the weighted average repo rate to 4.5 percent from 5.30 percent, influenced by US Federal Reserve policy shifts.
Meanwhile, total assets of Islamic banks and windows reached about 9.3 billion Omani rials by the end of November, accounting for 19.4 percent of the Gulf state’s total banking sector assets.
“This marks a 12.3 percent increase compared with the same period in 2024,” ONA reported, citing data from the Central Bank of Oman.
Total financing by Islamic banking units rose 10.3 percent to around 7.5 billion rials, while deposits increased 10.9 percent to approximately 7.3 billion rials by the end of November.
The November data follows the International Monetary Fund’s 2025 Article IV consultation report, released earlier this month, which highlighted the continued resilience of Oman’s economy amid global uncertainty.
The IMF cited steady growth in non-hydrocarbon sectors, low inflation, and broadly sound fiscal and external positions, underscoring the effectiveness of Oman’s coordinated economic and financial policies.
