Nestle (NESN. VTX) is preparing a bid for Pfizer’s (PFE NYSE) baby-food business in a bid to recapture momentum in China’s infant formula market, Bloomberg reported. The Swiss food giant has lost market share in China since 2005, when it withdrew two varieties of Neslac milk powder after authorities found they contained too much iodine. Pfizer is the fourth-largest baby-food company in China. Sara Welford, an analyst at Citigroup (C.NYSE), said that a purchase by Nestle would help raise its China infant formula market share to No. 3 from No. 6. Furthermore, the acquisition could provide cost savings equivalent to 10% of the unit’s sales. Danone (BSN.FRA) and Abbott Laboratories (ABT.NYSE) have also shown an interest in the business after Pfizer announced it would spin off its nutrition unit last month.