Nestle confident Dreyer deal will go ahead

Nestle is confident of reaching a deal with the US Federal Trade Commission after the regulator said it will seek to block the…

Nestle is confident of reaching a deal with the US Federal Trade Commission after the regulator said it will seek to block the company's $2.8 billion bid for Dreyer's Grand Ice Cream Inc, a Nestle spokesman said.

Nestle confident Dreyer deal will go ahead"Talks are ongoing and we remain confident, and believe that is possible to reach an agreement," he said.

Nestle Ireland employs about 160 people in the State following the sale of its Tallaght manufacturing plant and local brands produced here to Premier International Foods.

The FTC said yesterday it will seek to block the acquisition on antitrust grounds, maintaining that the purchase of Dreyer's would give Nestle about 60 per cent of the market for "super-premium" ice cream.

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"This merger, as structured, would likely raise prices and reduce choice for consumers," said Mr Joe Simons, the FTC's director of the bureau of competition, in a prepared statement.

Nestle markets the Haeagen Dazs brand in the US, while Dreyer's sells the Dreamery, Godiva and Starbuck ice creams.

Unilever NV, which markets the Ben & Jerry brand, is the third player on the US super premium ice cream market.

Nestle and Dreyer's yesterday announced concessions for an easier regulatory approval of the deal.

Dreyer's will sell its sorbet brands Dreamery and Whole Fruit to CoolBrands as well as assigning the licence for the Godiva ice cream brand subject to the receipt of required third-party consents, while Nestle will sell its frozen dessert distribution assets in cities across eight US states.