Swiss food group Nestle said on Monday, April 23 it would buy U.S. drugmaker Pfizer's infant nutrition business for $11.85 billion, beating out French rival Danone as both sought to gain preeminence in the lucrative baby food market.

"Its strong brands and product portfolio, its talented people dedicated to the success of its business, together with its geographic presence - 85 percent of its sales are in emerging markets - will complement our existing infant nutrition business perfectly," Nestle Chief Executive Paul Bulcke said, Reuters reported.

Nestle reported earlier that first-quarter sales rose a healthy 5.6 percent from a year earlier, fueled by strong growth in emerging markets and higher retail prices.

The sales amounted to 21.39 billion Swiss francs ($23.34 billion), though demand in developed markets was subdued amid global financial uncertainty in the United States - its biggest market - and Europe. Sales in developed countries grew 3.1 percent, compared with a 13 percent rise in emerging markets.