Nestlé has announced plans to raise approximately €3 billion by spinning off its global water business into a new 50:50 joint venture with United States investment firm Platinum Equity. The new company, to be named Peranel, is expected to become a significant player in the premium bottled water market while enabling Nestlé to sharpen its focus on its core food and beverage businesses.

The transaction, which is expected to be completed during the first half of next year, values Peranel at an enterprise value of approximately €4.9 billion. Upon completion, Nestlé expects to receive around €3 billion in cash proceeds.

Peranel will bring together several of Nestlé’s globally recognised water brands, including Perrier, S.Pellegrino, Acqua Panna, Nestlé Pure Life, and a portfolio of regional water businesses. The move follows a strategic review of Nestlé’s water operations, which have faced legal and regulatory challenges in France over unauthorised water treatment practices, alongside increasing environmental scrutiny concerning water usage and sustainability.

Nestlé Chief Executive Officer Philipp Navratil, commenting on the transaction while announcing the company’s first half financial results, said the partnership with Platinum Equity would provide Peranel with greater agility to execute its long term growth strategy. He added that the move aligns with Nestlé’s broader objective of improving growth and profitability by concentrating on its core businesses, including coffee, infant nutrition and pet care.

The transaction represents another major strategic restructuring by the Swiss food giant as it seeks to strengthen shareholder value while positioning its premium water brands for future expansion under an independent operating structure.