Nestle CEO: I'm Not A 'Mega Deal' Maker

September 29, 2022

Food group Nestle is in no hurry to acquire companies given rich valuations and will stick to its traditionally cautious approach to deals, its chief executive told a conference on Thursday.

"I've done hundreds of deals in my life, the largest one ever was Starbucks at 7 billion so I'm not a 'mega deal' maker," Mark Schneider said in a discussion organised by Bernstein.

The maker of KitKat chocolate bars and Nespresso portioned coffee has been adjusting its portfolio under Schneider's leadership, gearing it more towards high-margin premium products.

"I'm a strong believer in that statement by former U.S. President Obama: don't do stupid stuff. That to me in M&A is sort of the guiding light. You have to stay level-headed, down to earth, even if something looks attractive on paper it has to add up in all components," he said.

"If in a year no major deal happens, we can live with that," Schneider said. "We're not in a rush, we have lots of ways to grow our business next to M&A. Deals are optional because in most categories we have strong market shares."

Schneider said valuations were still quite rich, also for small to mid-sized deals, but at least these smaller deals were offering better prospects to earn back the costs.

Source: Reuters
Image source: Nestle

THE METRO BUSINESS

Insider Tips for Excelling in MSBM’s Online Courses

Strategies for Success: MSBM’s Business Management Insights

Nations are vying to join the BRICS group, according to South Africa, as Russia assumes leadership.

AI-Driven Business Transformation: A Project Management Perspective.

Nestle CEO: I'm Not A 'Mega Deal' Maker

Top Stories

DUP has reached an agreement with the UK government to reinstate power-sharing in Northern Ireland.

Global Trade at Risk: The Implications of Red Sea Ship Attacks on Consumer Goods

UK to lend back Ghana's stolen 'crown jewels,' announces Asante Gold.

Colombia seeks international aid, declaring a wildfire disaster.

Related Posts

Nestle Wants To Pay Cocoa Farmers To Keep Children In School

Nestle To Stop Sourcing From Indonesian Palm Oil Producer AAL

Nestle Plans Price Hikes After Inflation Eats Into Profits

Nestle's Nespresso To Sell Paper-Based Compostable Coffee Pods

Courses you might like

Professional Certificate Course in Consumer Attitude And Behaviour In Tourism

Professional Certificate Course in Renewable Energy Policies and Sustainable Development

Professional Certificate Course in Understanding the Principles of Healthcare Economics