Citing people familiar with the matter, the Journal said Nestle appears to have outstripped Danone and Mead Johnson Nutrition Co, who had teamed up for a bid, and that a deal could be announced as soon as next week. Nestle was already seen as a favored bidder.

Pfizer has been exploring options for its animal health and infant nutrition businesses for some time. A company official said on Tuesday that no decisions have been made and that the company will be in a position to announce any decisions this year.

A Nestle spokesman was not immediately available for comment.