(Widens distribution.)
ZURICH, Aug 25 (Reuters) - Nestle intends to keep its
Health Science unit, Chairman Paul Bulcke said in a newspaper
interview published on Sunday, after the food giant announced it
was replacing its CEO Mark Schneider with company veteran
Laurent Freixe.
The health business is among the Nestle units which some
analysts say could be sold over the medium turn.
Asked by the NZZ am Sonntag newspaper whether Nestle would
retain Nestle Health Science, Bulcke said: "Absolutely," adding
that the sector was "promising with benefits for society."
Bulcke's remarks come after Nestle said on Thursday Schneider
would step down after nearly eight years at the helm.
"It wouldn't surprise us if Nestle Health Sciences was sold
in the medium term, which would be welcomed by the majority of
investors," ZKB analysts said in a note on Friday.
Nestle shares have been on a decline since May 2023 after a
series of mishaps, earnings misses and
downgrades of its revenue expectations
, after hitting a record high in January 2022.
Still, Bulcke told the paper Schneider's departure was "not
dictated" by the share price.