Nestle to Buy Aimmune Therapeutics

The food giant Nestle wants to acquire the biopharmaceutical company Aimmune Therapeutics, in which it currently holds a 25.6% stake

Trader 1

The food giant Nestle wants to acquire the biopharmaceutical company Aimmune Therapeutics, in which it currently holds a 25.6% stake. The group will launch a takeover bid for the Wall Street-listed company, offering $34.50 (31.18 Swiss francs) per share and valuing the company at $2.6 billion.


The proposed price implies a 170% premium to Friday's closing price of $12.60. The transaction will be financed with "available cash".
The acquisition will contribute to the organic growth in 2021, and to earnings by 2022-2023.

Nestle mainly wants to acquire Palforzia, a product recently approved in the United States, which is presented as the only product to help reduce the frequency and severity of peanut allergic reactions in children.

From a chartist’s point of view, the stock price is trading within a short term upward-sloping channel since April 2020 and remains supported by its rising 50DMA currently at 108.14CHF. Prices are nearing the former resistance at 113.2CHF. A short term consolidation move cannot be ruled out. As long as 105CHF is support, the bias remains bullish. A push above 113.2CHF would call for a new up leg towards 120CHF. Alternatively, a break below the channel support at 105CHF would call for a reversal down trend with 99.8CHF as target. 

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.