A new growth formula for Reckitt Benckiser

Reckitt Benckiser is bidding for baby milk giant Mead Johnson. Will it pay too high a price? Ben Judge reports.

Reckitt Benckiser is bidding for baby milk giant Mead Johnson. Will it pay too high a price? Ben Judge reports.

Reckitt Benckiser, the maker of household goods including Cillit Bang, Durex and Nurofen, has offered $16.7bn (£13.3bn) to buy Mead Johnson, the US-based maker of baby milk. Reckitt has offered $90 a share, a premium of almost 30% over Mead's share price before the news broke. The deal would be financed with cash and the issuance of new debt by Reckitt, which would mark "the end to a more-than-decade-long focus on retaining low leverage", says Nina Trentmann in The Wall Street Journal.

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Ben Judge

Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.

Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin. 

As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.