Nestlé continues to enhance its mineral water business, but the race to acquire a financial partner is narrowing. According to Bloomberg, French fund PAI Partners has decided to withdraw from the race to acquire a 50% stake in the business, which includes iconic brands such as Perrier.
PAI's exit represents a significant step in a process that has attracted the interest of major international investors for months. The remaining contenders are the U.S. fund Clayton, Dubilier & Rice (CD&R) and Platinum Equity, the private equity firm led by billionaire Tom Gores, both interested in acquiring a stake in the Swiss group's water business.
According to reports, KKR also abandoned the selection process in recent weeks, further reducing the pool of potential candidates. None of the parties involved have released official comments. Nestlé, KKR, and PAI Partners declined to comment on the rumors, while CD&R and Platinum Equity did not respond to media requests.
The transaction is part of the food giant's portfolio reorganization strategy, which aims to leverage a business historically considered of great interest to both financial investors and industrial operators. As early as 2024, Sanjay Bahadur, then head of strategy and development for the group, had emphasized that the water sector had long been a focus of market attention.
Last March, the Financial Times reported that the process of selling a multibillion-dollar stake in the water business had entered an advanced stage, with CD&R, KKR, and PAI admitted to the next round of bidding. The exit of two of the three initial contenders could now accelerate the selection of a partner to join Nestlé.
Meanwhile, the Swiss group continues to demonstrate operational strength. In April, it confirmed its 2026 forecast, indicating organic growth of between 3% and 4% and an improvement in operating margin compared to the previous year.
In the first quarter of the year, organic sales increased 3,5%, exceeding analysts' expectations of 2,4% growth. The results were primarily driven by strong performance in coffee and pet food, as well as 4,6% growth in emerging markets.
As the search for a partner for its water business continues, Nestlé thus confirms its ability to combine portfolio restructuring and commercial growth, maintaining high investor interest in its strategic assets.
