Danone Said in Talks to Sell Medical Nutrition to Nestle

Danone is in advanced talks to sell its medical-nutrition business to Nestle SA after Fresenius SE dropped out of the process, according to people familiar with the matter.

While a sale to Nestle is the most likely outcome, the transaction faces antitrust hurdles in some western European markets where the two companies operate, said the people, who asked not to be identified as the deliberations are private.