Reckitt Benckiser receives final approval for Mead Johnson acquisition
Reckitt Benckiser Group (RB) has received final regulatory approval for the acquisition of paediatric nutrition products manufacturer Mead Johnson.
The acquisition is expected to be completed on 15 June.
China was the last of the ten countries that had to give clearance.
Although Reckitt had expected the transaction to complete before the end of Q3 ending 30 September, the deal will now complete in its first half, reported Financial Times.
In February, RB announced its plans to acquire Mead Johnson.
According to the deal, RB agreed to pay $90 a share in cash, taking the transaction value to $17.9bn, which also includes Mead Johnson’s net debts.
The acquisition of Mead Johnson brings R&D, quality and specialist distribution capabilities to the RB.
In May, the deal was approved by Mead Johnson stockholders.
At the time of signing the merger agreement, Reckitt Benckiser chief executive officer Rakesh Kapoor said: “The acquisition of Mead Johnson is a significant step forward in RB’s journey as a leader in consumer health.
“With the Enfa family of brands, the world’s leading franchise in infant and children’s nutrition, we will provide families with vital nutritional support.
“This is a natural extension to RB’s consumer health portfolio of Powerbrands, which are already trusted by millions of mothers, reinforcing the importance of health and hygiene for their families.”
Reckitt Benckiser expects the acquisition to further strengthen its position in markets such as China and enhance the combined group sales by 40%.
Reckitt expects to divest its foods business following a launch of a strategic review in April.
Its food business comprises French’s mustard and Frank’s Red Hot sauces.