Nestlé spins off its water business into a joint venture
Keystone-SDA
The Swiss food giant is setting up a joint venture called Peranel with the US private equity firm Platinum Equity. It will be based in Paris.
The deal values the business, which includes brands such as Perrier and San Pellegrino, at €4.9 billion euros and CHF4.5 billion respectively. Both partners will each hold a 50% in the joint venture. Nestlé will receive CHF2.8 billion from the partial sale, the food group announced on Thursday.
The transaction comes as no surprise. Nestlé had already announced in 2024 that it intended to divest its water business. The division was spun off organisationally last year, and in early 2026 the group confirmed that the sale process was underway.
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The transaction is still subject to employee consultation processes and regulatory approvals and is expected to be completed by the first half of 2027, according to the press release.
The water business has long been a problem child for Nestlé. Among other things, the business has been weighed down by the scandal surrounding unauthorised treatment methods for mineral water in France. Last year, the water segment contributed around CHF3.5 billion, or just under 4%, to the group’s turnover.
The spin-off into a joint venture is part of the group’s restructuring under Nestlé’s new CEO, Philipp Navratil. Nestlé intends to focus on fewer business areas and is also seeking a buyer for parts of its vitamins and dietary supplements business.
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Translated from German, reviewed by an English Department journalist.
