< Back to Trader Blog Articles

Panadol and Chapstick firms in mega-merger

2

European markets were a mixed bag on Tuesday, as crude oil prices plummeted to new lows and investors remained jittery over an expected U.S. interest rate hike. The Stoxx Europe 600 dropped 0.1% to 342.79. France’s CAC 40 slipped 0.1% to 4,732.85 and U.K.’s FTSE 100 declined 0.3% to 6,750.60. Germany’s DAX 30 was up 0.4% to 10,807.69, as it clawed back losses from dip buyers getting back into the action ahead of the Christmas break.

U.S. stocks ended mostly higher on Tuesday in a turbulent session as key equity benchmark indexes tried to break away from their lowest levels since the autumn of 2017. The S&P 500 was mostly unchanged at 2,546. The Dow Jones Industrial Average advanced 0.4%, to 23,678. The Nasdaq Composite finished higher by 0.4% to 6,784.

The painkiller brands Panadol and Anadin will be bought under one roof under a giant deal between drug firms GlaxoSmithKline and Pfizer.

The two firms are combining their consumer healthcare businesses into one firm with annual sales of EUR 10.9 bn.

Other brands involved in the deal include Aquafresh toothpaste and Chapstick lip balm.

The move comes nearly nine months after GSK bought out Swiss firm Novartis’s stake in a similar joint venture.

GSK, which will have 68% of the new business, said the deal was a "compelling opportunity" to build on its earlier buyout and deliver stronger sales.

The merger will have combined sales of EUR 10.9 bn and is expected to take effect in the second half of 2019, subject to regulatory approval.

The joint venture will go by the name of GSK Consumer Healthcare. Apart from GSK’s Nigerian subsidiary, which is excluded from the deal, it will operate in all countries where GSK and Pfizer have a presence.

GSK will have six directors on the board, while Pfizer will have three.

Italy reaches budget agreement with European Union

Italy’s government has reached an accord with the European Union regarding its controversial budget proposal for 2019, which may avert a clash with officials of Europe’s trade bloc, according to reports. Rome’s draft budget proposal earlier this year drew a swift rebuke from Brussels because it would have resulted in a budget deficit of 2.4% of gross domestic product, running afoul of EU membership rules. This led to the EU launching a so-called "excessive deficit procedure" against Italy in November, and caused investors to fret about the health of the eurozone’s third-largest economy and the stability of the EU more broadly.

The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

Important(Notices)
The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.