Durex maker in $16.7bn bid for Mead Johnson Nutrition

Dunno where else to put this...but

Isnt this the very definition of "conflict of interest"

a condom maker buying out a baby food maker???

look out for leaky condoms.....




Durex maker in $16.7bn bid for Mead Johnson Nutrition

The FTSE 100 firm behind the Nurofen and Durex brands moves in on a baby formula maker as it looks for a greater foothold in Asia.


Reckitt Benckiser (RB), the FTSE 100 consumer goods group behind the Durex and Nurofen brands, says it is in advanced talks to buy a baby formula maker for $16.7bn (£13.2bn).

The UK company said it had offered to pay $90 in cash for each Mead Johnson Nutrition share in a proposed deal financed by cash and debt.

It represented, RB said, a premium of almost 30% on Mead's share price at close of trading on Wednesday. The price leaped 22% in after-hours trading.

The US firm is attractive as it has a strong foothold in the emerging markets of Latin America and Asia - particularly China.

RB's proposed price represents a multiple of 17 times Mead Johnson's estimated 2017 earnings, according to analysts at Wells Fargo.

Its statement to the stock exchange said: "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.

Which is more profitable, a condom or a jar of baby food? May have that the idea is to sell hi-caloric baby food to make babies fat and undesirable, so that more dads buy condoms to avoid parenthood.