PAI Partners is in the early stages of exploring options for its ice cream joint venture with Nestle SA (SWX:NESN) that includes brands like Haagen-Dazs, according to people familiar with the matter. The venture, Froneri, could be valued at more than $10 billion in a transaction, the people said, asking not to be identified discussing confidential information. PAI and Nestle declined to comment.

PAI could launch a so-called dual-track process in the second half of the year, exploring both a sale and initial public offering of its stake in the business, they said. Nestle is expected to retain its stake, according to the people. Nestle and PAI each own about half of Froneri.  Sales of ice cream and other treats have been threatened by the booming popularity of a new class of weight-loss drugs including Ozempic.

Competition in the ice-cream market also has intensified, with a surge in upstarts selling healthier options. Nestle shares rose 0.8% to CHF 97.45 at 5:19 p.m. in Zurich.