Nestlé is close to finalising a deal with private equity group Platinum Equity to sell a stake in its European water business, potentially valuing the unit at nearly €5bn. The agreement, structured as a joint venture, is expected to be for approximately 50% of the division, which includes brands like San Pellegrino and Perrier. This would conclude a lengthy sale process initiated by Nestlé in 2024.

Platinum Equity, led by Tom Gores, emerged as the sole bidder after competitors like KKR and PAI Partners withdrew. The sale has faced complexities, including a French fraud investigation involving Nestlé's bottling sites and a 2024 water purity scandal where Nestlé admitted to using prohibited treatment methods. The water business represented about 3.5% of Nestlé's group sales last year.

The move is part of Nestlé's strategic overhaul under new CEO Philipp Navratil and chair Pablo Isla, aiming to simplify its focus on fewer categories. Nestlé has a history of joint ventures with private equity, including past deals for its ice cream and frozen pizza businesses, and a $4.3bn sale of its North American water assets in 2021.