12.11.03
European Union competition authorities said they had cleared a joint venture between Nestle SA and Colgate-Palmolive Co. to make tooth-cleaning chewing gum. The partnership is a first step by Nestle to move from low-margin food products to more profitable health and beauty goods.
Nestle said when the deal was announced in June that the Colgate Dental Gum would be sold first in early 2004 in test markets in Britain, Ireland and Canada. The dental gum joint venture is unlikely to take much of a bite from the $12 billion global gum market, which is dominated by Wrigley and Cadbury-Schweppes.
Regulators at the European Commission have the power to block or modify deals they believe damage competition.
Nestle said when the deal was announced in June that the Colgate Dental Gum would be sold first in early 2004 in test markets in Britain, Ireland and Canada. The dental gum joint venture is unlikely to take much of a bite from the $12 billion global gum market, which is dominated by Wrigley and Cadbury-Schweppes.
Regulators at the European Commission have the power to block or modify deals they believe damage competition.