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The Abu Dhabi Investment Authority (ADIA) is considering a proposal to invest at least €1 billion ($1.1 billion) in food giant Nestlé SA’s ice cream joint venture, Bloomberg reported.
The UAE capital’s biggest sovereign wealth fund is in talks with advisers on plans to commit funds to the European company’s Froneri ice cream venture with private-equity firm PAI Partners, the news agency reported on Tuesday, citing sources familiar with the matter.
PAI Partners, a Paris-based buyout company, has reportedly been in talks with investors as it looks to extend its investment or hold its 50% stake in its JV with Nestlé.
The deal could put the value of Froneri, which includes top brands like Haagen-Dazs, at $10 billion or more, the news agency quoted the sources as saying.
No final agreement has been reached with ADIA so far, although Abu Dhabi’s sovereign wealth fund, Nestlé and PAI declined to comment on the matter.
Established in 2016, the Froneri JV combines activities in over 20 countries in Europe, the Middle East, Argentina, Australia, Brazil, the Philippines and South Africa, according to the PAI website.
(Writing by Cleofe Maceda; editing by Brinda Darasha)