ADVERTISEMENT

Nestle enters US$7.2b global coffee alliance with Starbucks


ZURICH: Nestle SA agreed to enter a partnership with Starbucks Corp. to market the coffee chain’s consumer and food-service products globally in a first tie-up of major rivals in the java market.

Nestle will pay Starbucks $7.15 billion upfront in cash for a business that has annual sales of $2 billion, the Swiss company said in a statement Monday. Nestle expects the deal to contribute positively to its earnings per share and organic growth targets as from 2019. Nestle’s ongoing share-buyback program will remain unchanged.

Corporate News

   

ADVERTISEMENT