Nestlé to buy back $21B in its own stock by 2020

Nestlé says it plans to spend about US$21 billion to buy its own stock in the next three years as the food and beverage giant seeks to boost shareholder value.

The Swiss food and beverage giant also says after a review of its wide-ranging business, it will mostly focus on high-growth areas, such as coffee, pet care, baby food and bottled water. Late last month the company announced its food and beverage unit in the U.S. had acquired a stake in meal delivery startup Freshly.

Nestlé says it may adjust its portfolio of brands to fit in with its new strategy. Earlier this month, the company said it may sell its U.S. candy business, which makes the Butterfinger and Crunch bars.

The moves come after news recent reports say activist shareholder Third Point is pushing Nestlé to sell its stake in French cosmetics company L'Oréal.