Nestle nears sale of water business stake at close to €5 billion valuation, FT reports

(Corrects CEO name to Philipp Navratil, not Laurent Freixe, in paragraph 3 and date in paragraph 4 to May last year, not last May)

July 22 (Reuters) - Private equity firm Platinum Equity is nearing a deal to acquire about a 50% stake in Nestle's European water business in a transaction that would value the joint venture at almost €5 billion ($5.71 billion), the Financial Times reported on Wednesday.

The companies are aiming to finalise an agreement before Nestle reports first-half earnings on Thursday, the report said. Nestle declined to comment.

The company has been reshaping its portfolio under CEO Philipp Navratil, who has sought to improve growth and profitability by focusing on the company's core brands.

Reuters reported in May last year that Nestle had hired Rothschild to explore a partnership or sale of a stake in its European water business while retaining part ownership. The unit includes brands such as Perrier, San Pellegrino and Acqua Panna.

($1 = 0.8760 euros)

(Reporting by Anna Peverieri in Barcelona, and Richa NaiduEditing by David Goodman and Andrei Khalip)