Reckitt Benckiser Group in “Advanced Negotiations” with Mead Johnson

02 Feb 2017 --- Reckitt Benckiser Group Plc is in US$16.7 billion discussions to takeover Mead Johnson Nutrition Company. The British multinational consumer goods company behind a series of health, hygiene and homes produces and brands, has made a play for infant formula makers Mead Johnson.

Reckitt Benckiser Group issued a statement confirming a possible transaction following mounting speculation about the deal.
 
“RB 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 $16.7 billion,” it says.
  
“The parties are presently engaged in a period of due diligence and contract discussion.”
  
“RB presently expects to finance the possible transaction through a combination of cash and debt, whilst retaining a strong investment grade credit rating.”

Reckitt Benckiser Group points out there is no certainty that any transaction will ultimately be agreed, nor as to the terms on which any transaction might occur.
  
“A further announcement will be made as appropriate,” it adds.

Meanwhile Mead Johnson Nutrition says it does not ordinarily comment on market speculation or rumors, but in response to media reports and the subsequent statement released by Reckitt Benckiser plc, it confirms that it is in discussions with RB with respect to its proposal to acquire the outstanding shares of MJN for $90 per share in cash.

“Mead Johnson notes that no agreement has been completed, and there are no assurances that any transaction will result from these discussions,” it says.

“The company does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated.”

“Mead Johnson remains committed to doing what is best for its shareholders, employees and, as always, the children, families and healthcare professionals around the world who trust and depend on its products and expertise.”