Reckitt Benckiser bids $16.7bn for Mead Johnson

UK-based consumer goods producer Reckitt Benckiser yesterday announced it has made a $16.7bn bid for Illinois, US-based baby formula maker Mead Johnson. The bid corresponds to $90 per share, that is to say a 30% premium to Mead Johnson’s closing price on Tuesday. A takeover would increase Reckitt Benckiser’s sales in Asia, one of the most challenging markets for the group, together with Russia. Rakesh Kapoor, RB’s CEO, has found in Mead Johnson his major, long-sought target. The US company had allegedly been targeted by French Danone, which instead has opted to acquire WhiteWave. Mead Johnson generated sales of $4bn in 2016. Its leading brands are Enfamil and Nutramigen. (Source The Telegraph)