Durex owner Reckitt Benckiser receives final approval for acquisition of Mead Johnson

 
Helen Cahill
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General Election - Economy
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Reckitt Benckiser has today received regulatory approval for its acquisition of Mead Johnson.

The $16.7bn (£13.2m) acquisition is expected to take place on 15 June.

The deal was being examined by China's ministry of commerce because Mead Johnson has a large exposure to Chinese markets.

Read more: Condom maker to sell off sauce division in bid to fund Mead Johnson deal

The Durex owner announced its intention to take over US group Mead Johnson, a baby formula maker, in February.

The transaction is being financed through cash and debt. It is buying Mead Johnson's shares at $90 each.

Reckitt Benckiser owns a portfolio of brands including Cillit Bang, Strepsils and Gaviscon, and the mega-merger will allow the firm to move into the higher-margin health food market.

Chief executive officer of Reckitt Benckiser, Rakesh Kapoor, said the deal was a "significant step forward" for the company.

Mead Johnson is also well-established in emerging markets across Asia, providing a growth opportunity for the merged group.

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