The auction of the consumer healthcare brands by Pfizer, the US drugs company behind the Advil painkiller, has become something of a headache. Reckitt Benckiser and Glaxosmithkline were considered frontrunners for the business but have faced scepticism from investors amid concerns about the financial and strategic impact any deal would have.
Reckitt’s surprise decision, announced on Wednesday night, to end talks with Pfizer, citing its interest in only buying part of the business, has seemingly relieved shareholders, with the stock rallying 270p to £58.96 yesterday, the biggest riser on the FTSE 100.
Rakesh Kapoor, Reckitt’s chief executive, was confronting unease over an acquisition — said to be valued at between $15 billion and $20 billion — stretching the consumer goods group at a difficult time.