British company that makes condoms acquiring baby formula maker

In pre-market activity on the NYSE, Mead Johnson shares were gaining around 4.74 percent. The RB board is unanimous in recommending the deal to its shareholders, the company noted. They issued a "sell" rating and a $66.00 price target on the stock. Mead Johnson Nutrition Company has a one year low of $69.25 and a one year high of $94.40. The share price of the stock surged 15.44% for the year. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the company's stock.

WARNING: "Mead Johnson Nutrition Company (MJN) Downgraded by BMO Capital Markets to Market Perform" was posted by Community Financial News and is owned by of Community Financial News. 18,539,552 shares of the stock were exchanged. The stock's current distance from 20-Day Simple Moving Average (SMA20) is -0.49% where SMA50 and SMA200 are 5.88% and 21.2% respectively.

Mead Johnson Nutrition Company (Mead Johnson) is a pediatric nutrition company.

Diluted earnings per share rose 6% to 256.59 each.

Reckitt Benckiser on Friday announced its acquisition of Mead Johnson in a deal valued at approximately $17.9 billion. During the same quarter in the prior year, the business earned $0.78 earnings per share. The deal will also significantly boost the company's exposure to the US, which remains its No. 1 market. Therefore, stock prices are sometime established based on the expectations that prospective investors have for the future earnings power of the firm.

Reckitt Benckiser confirms purchase of baby formula maker Mead Johnson for $90 a share
Maker Of Durex Condoms Now Also Owns Baby Formula Brand

The counter witnessed a trading volume of 3.93 million shares versus an average volume of 2.59 million shares during last trading session.

Subject to shareholder and regulatory approvals, Reckitt expects the Mead Johnson deal to close by the end of the third quarter.

The British company behind Durex condoms has agreed a deal to purchase a U.S. baby food firm for £13.2billion. Reckitt shares fell, reversing early gains, as the company forecast 2017 revenue gains below analyst estimates. The company also operates assets in Egypt and the United Kingdom in the North Sea.

Since stepping into the CEO position in 2011, Kapoor has looked to transform the company through a series of large-scale acquisitions.

Mead Johnson is already a leader in the global infant and children's nutrition category, estimated to be worth upwards of $46 billion, RB noted.


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