Blackstone Bids on $5.75B Nestlé Water Unit, Boosts Private Credit
Blackstone has joined KKR, CD&R and PAI Partners in bidding for a 50% stake in Nestlé’s water division valued at $5.75 billion, with bankers lining up €2–3 billion in acquisition financing. The firm is boosting floating-rate debt and inflation-linked bond allocations to capitalize on oil-driven inflation and higher yields.
1. Bidding for Nestlé Water Stake
Blackstone has joined KKR, CD&R and PAI Partners in a consortium bidding for a 50% stake in Nestlé’s water and premium beverages division, valued at $5.75 billion. The unit comprises brands such as Perrier and S.Pellegrino, while bankers are arranging €2–3 billion in acquisition financing.
2. Strategic Shift to Private Credit
In response to oil-driven inflation pressures and potential rate hikes, Blackstone is increasing allocations to floating-rate debt and inflation-linked bonds within its private credit platform. The firm’s move aligns with peers as demand rises for higher-yield debt instruments in a volatile rate environment.