Nestlé and Novartis have signed an agreement providing the sale of 24.85% of Alcon's issued capital to Novartis - approximately €7billion in cash. Nestlé will retain close to 52% of Alcon's issued capital and continue to fully consolidate Alcon. The proceeds of the transaction will be used by Nestlé to reduce debt as the company pursues its on-going share buy-back program. The transaction is still subject to regulatory review and Nestlé expects the process to be completed before autumn of 2008.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé stated that the decision allows Nestlé "to take a further step in realizing shareholder value from its long-term Alcon investment." In addition, the proceeds will be used towards growth in the Group's nutrition, health and wellness lines.