SSL completes sales negotiations with Reckitt
Reckitt Benckiser have £2.5bn offer accepted
SSL International, the maker of Durex condoms, has completed
sales negotiations with Reckitt Benckiser.
The firm has accepted a £2.5 billion offer from consumer goods
giant Reckitt, which is looking to expand its operations in Asia
and Russia.
Reckitt has had three offers turned down over the past five
weeks but its share offer of £11.63 plus an 8p dividend has now
been accepted.
Following the news, SSL shares rose sharply to a record-high of
£11.77 - above the offer price - leading to speculation that a
rival bidder could now step in.
Gerald Corbett, SSL chairman, claimed the deal was a "good
outcome for shareholders".
"There are not many companies in their portfolios' that have
done as well as SSL over a one, three and five-year period. It is a
good outcome at this price level," he said.
Reckitt owns major brands such as dishwasher powder Finish,
Nurofen and Gaviscon and will now add Durex and Scholl Shoes to its
impressive portfolio.
The UK-based company has 24,900 staff worldwide with operations
in 60 countries.