Nestlé’s planned sale of a stake in its water division has moved into the next phase, with several private equity firms advancing in the bidding process, according to a report by the Financial Times, citing sources familiar with the matter.

The report states that Clayton, Dubilier & Rice (CD&R), KKR and PAI Partners have progressed to the next round of bids for a potential 50% stake in Nestlé’s water business. The deal could value the unit at around €5 billion. Platinum Equity is also said to have expressed interest.

The unit includes premium bottled water brands such as Perrier, San Pellegrino and Acqua Panna, and forms part of Nestlé’s ongoing efforts to reshape its portfolio.

This announcement comes against the backdrop of broader changes at the Swiss group. Under CEO Philipp Navratil, who was appointed following the dismissal of Laurent Freixe, Nestlé has been reassessing its portfolio and exploring divestments to focus on higher-growth areas.

As part of this strategy, the company has been reviewing underperforming or non-core assets. It has previously explored disposals through private equity partnerships, including the sale of its remaining ice cream interests to Froneri, its joint venture with PAI Partners.

Earlier this year, Bloomberg reported that Nestlé was moving forward with plans to sell a stake in its bottled water division, with buyout firms including PAI Partners, Blackstone, KKR, Bain Capital and CD&R having expressed interest.