Reckitt Benckiser may merge with Colgate-Palmolive: report
19 Nov 2009
Reckitt Benckiser plc, a global health and personal care products company, may be close to a multi-billion pound merger with US consumer goods giant Colgate-Palmolive, according to the Telegraph.
The London-based paper, however, said it was not clear which company Reckitt was targeting.
Although Reckitt has seen SSL International, the maker of Scholl footwear products and Durex condoms as a potential takeover target, Telegraph said, well-placed sources consider Colgate-Palmolive as the most obvious candidate.
The Slough, UK-based Reckitt Benckiser produces some popular household products like Finish, Dettol, Clearasil, and Nurofen among others.
The company's stock rose 3.1 per cent in London trading yesterday, while Colgate rose by 3.7 per cent in New York Stock Exchange following the report.
Reckitt Benckiser is smaller compared to New York-based Colgate-Palmolive both in sales turnover and market capitalisation.
Reckitt Benckiser had revenues of $11 billion against Colgate-Palmolive's $15.3 billion in 2008. Colgate's market capitalisation is $41.2 billion, while Reckitt's is $37.1 billion
Both companies declined to comment on the media reports although there was speculation even earlier this year that Colgate-Palmolive could merge with a UK-based company.
