Three years ago, Reckitt Benckiser (RB) bought baby formula company Mead Johnson (MJN) for a huge $17.9bn (£14.3bn). This should have been a pivotal moment for the household goods giant – massively strengthening its position in developing markets. But the takeover has since dampened Reckitt’s performance and put the brakes on growth. Integration has taken longer than expected and diverted management’s attention. And in China, a country particularly emphasised during the deal process, the birth rate has fallen while local competition has ramped up.
Anticipated turnaround under new management
Big-name brand portfolio
Rising demand for hygiene products
Recent issues with integrating Mead Johnson business
Vulnerable to downturns in consumer spending