Nestlé has completed its CHF 20 billion ($20.64 billion) share buyback programme that was launched in 2017 and has confirmed the start of another for the same amount.
The programme has allowed Nestlé to acquire more than 225 million of its own shares.
Since its initiation on 4 July 2017, Nestlé has repurchased 225,186,059 of its shares for a total of CHF 20 billion ($20.64 billion) at an average purchase price per share of CHF 88.82 ($91.64).
A total of 136.2 million repurchased shares were cancelled, resulting in the share capital of the company being reduced to CHF 297.6 million ($307 million). Nestlé will decide upon the cancellation of the remaining 89,026,059 repurchased shares in its next annual general meeting.
The Swiss giant will start a new share buyback programme of up to CHF 20 billion ($20.64 billion) as announced last year in October.
Nestlé plans to commence repurchases on or after 3 January 2020 and has said the programme “shall be completed by the end of December 2022”.
According to the company, the volume of monthly share buybacks will depend on market conditions and the amount will be reduced according to any sizeable acquisitions and dividend payments.
In December last year, Nestlé agreed to sell a 60% stake of its packaged meat business Herta to Spanish food company Casa Tarradell, as well as its US ice cream business to Froneri, an ice cream-focused joint venture Nestlé created in 2016 with PAI Partners, for $4bn.
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