By Heide Oberhauser-Aslan
German health-care products and services company Fresenius SE
& Co. KGaA is set to withdraw from the bidding for the medical
nutrition business of French dairy-products group Danone SA, two
people familiar with the matter said.
There is a 98% likelihood the deal won't materialize, said one
person close to the matter. Fresenius is highly frustrated with the
way the negotiations have taken place, this person said.
A Fresenius spokesman declined comment.
As previously reported, Fresenius and European buyout firm
Permira have made a joint bid for the business, according to people
familiar with the matter, as the French group pushes to advance a
sale that has run into several road bumps.
The bid was submitted earlier in November, the people said. The
medical unit could have a value of 3 billion euros ($3.75 billion)
to 4.5 billion euros, according to analyst estimates.
Danone has been in talks with potential buyers since March to
sell its medical-nutrition business, which makes food for the sick,
young and elderly, but efforts to complete a sale have been
complicated by disagreements over price and potential antitrust
issues.
Write to Heide Oberhauser-Aslan at heide.oberhauser@wsj.com
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