The Italian chocolate giant Ferrero has agreed to buy Nestle’s US chocolate business. The amount that Ferrero is committing for this deal is $2.8 billion. The sweet treats that Nestle sells in America are Laffy Taffy, Skinny Cow, Nips, Butterfinger, Nestle Crunch, Baby Ruth, and Raisinets. Ferrero is known for its popular sweets Nutella, Ferrero Rocher chocolates and Tic Tacs.
The Swiss chocolatier’s confectionery sales in the US in 2016 stood at $900 million. The CEO of Nestle, Mark Schneider, said that he was very happy with the deal with Ferrero. This move will allow the Nestle Company to invest in a wide range of products for which the company feels that there will be a great business in the future. Some of the businesses that Nestle is looking to venture into include infant nutrition, pet care, bottled water, frozen meals, and coffee.
After acquiring the Nestle’s US chocolate business, Ferrero will become the third largest confectionery company in the world. Giovanni Ferrero, the executive chairman of the Ferrero Group, said that the company is very happy with this acquisition of Nestle’s US chocolate business. It has iconic sweet treats on sale in the US and the consumers are fully aware of their sweet products.