The infant formula world has taken notice of an announcement from Britain's Reckitt Benckiser that it was in talks to take over America's Mead Johnson Nutrition.
The infant formula world has stood up and taken notice of an announcement from Britain's Reckitt Benckiser that it was in talks to take over America's Mead Johnson Nutrition at US$90 a share - an almost 30 per cent premium to its last traded market price.
"Reckitt Benckiser confirms that
it is in advanced negotiations to acquire each Mead Johnson share for $90 in cash, valuing Mead Johnson's entire share capital at approximately US$16.7 billion," Reckitt said in a statement to the London Stock Exchange, issued in response to media speculation.
"The parties are presently engaged in a period of due diligence and contract discussion," it said.
Reckitt said it expects to finance the possible transaction through a combination of cash and debt, while retaining a strong investment grade credit rating.
The company said there was no certainty that the transaction would ultimately be agreed to.
