Danone Saudia Arabia- a multinational French dairy consumer product- is planning to sell its medical nutrition unit to a Hospira Inc. Hospira is a U.S pharmaceutical and medication delivery company.
According to reports, this deal will give a rise of $5 million to the unit. It will enable Hospira to transfer its tax base to France after that the company will be listed along with the other tax inversion companies. Presently, several companies are shifting their head offices to another country for the sake of getting rid with the higher U.S tax policies.
Danone has made an effort to sell its medical nutrition unit since last four months. In the past, the company tried to make an agreement with Nestle SA (NESN) and Fresenius SE but in vain. That deal would have given , 3 billion euro that will be $4 million approximately to the company.
Patrik Lang, an analyst at Julius Baer Group Ltd. said that the cause behind this deal is that the company wants funds to increase its growth. Now, the question arises is that how Danone will utilize this money and what strategies the company is will follow. In Paris, where Danone is located, the shares went 1.6 percent higher at 55.95 euros. It provides the owner a market value of 36 billion euros . On the other hand, Hospira refrained from giving any on this particular issue