Nestle uncorks £4.2bn water deal as private equity moves into global hydration empire

Nestle is carving out its global water business in a £4.2bn deal with private equity group Platinum Equity, creating a new standalone company that will bring together some of the world’s best-known bottled water brands.

The Swiss food giant behind Kit Kat and Nescafé confirmed it will form a joint venture called Peranel, with Nestle and Platinum Equity each holding a 50 per cent stake. The new company will include more than 30 brands, including Perrier, S.Pellegrino, Buxton and Acqua Panna, alongside hydration products and the global Nestle Pure Life brand.

The transaction values the business at around €4.9bn (£4.2bn) and is expected to generate approximately €3bn (£2.6bn) in cash proceeds for Nestle as the company continues a wider strategy of simplifying its portfolio and focusing on higher-growth areas, The Independent reported.

But the deal has triggered warnings from unions over potential job cuts and cost-cutting once private equity ownership begins.

Unite general secretary Sharon Graham said the new owners would face opposition if they attempted to reduce jobs, wages or working conditions at Nestle’s UK operations.

“The new owners are on notice,” she said, warning that workers would resist any moves designed to increase investor returns at the expense of employees.

The GMB union also raised concerns over Nestle’s Welsh water business, Princes Gate Water, saying it would closely monitor any changes following earlier plans by Nestle to cut more than 450 UK jobs.

The concerns reflect a longstanding tension surrounding private equity takeovers: investors argue they unlock efficiency and create stronger companies, while critics fear aggressive cost reductions and pressure on workers.

Nestle said Peranel would create a “focused and agile” global water business capable of investing in its brands and expanding internationally.

The move comes as multinational food companies increasingly reassess sprawling portfolios, selling slower-growth divisions to free capital for premium products, technology and emerging consumer trends.

For Nestle, the deal marks another step away from its traditional conglomerate model. For workers, however, the question remains whether the new owners see a global hydration champion — or simply another opportunity to squeeze costs.