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WSJ: Bids for Merck's consumer business could top $10B

  • Merck's (MRK) plan to sell its portfolio of popular consumer brands including Coppertone sun screen and Claritin allergy pills is kicking into high gear, with consumer and healthcare companies expected to put in bids that could top $10B, WSJ reports.
  • MRK is said to have already received preliminary offers for the business, and final bids likely will be due late next month.
  • After recent talks for a swap of the business for Novartis' vaccine and animal health units fizzled, MRK has turned its attention toward an outright sale; CEO Ken Frazier has said the consumer business is heavily concentrated in North America and lacks sufficient global scale.
Comments (1)
  • docscholl
    , contributor
    Comments (17) | Send Message
     
    I'd like to invite those "in the know" to comment on the pro's and con's of such a sale.

     

    From what I've read: a CBS News report from 2011 stated:
    "Someone needs to slap Merck (MRK) CEO Kenneth Frazier for saying that he will consider "all the options," including a sale of the company's consumer health unit which markets Coppertone, Dr. Scholl's, Tinactin and a bunch of other unglamorous brands."
    The report included four points why Frazier should not sell these units.

     

    Likely, the sell-off will happen.
    Then what?
    Do shareholders of Merck also become shareholders of the company/s that buy the units as well?

     

    This isn't like Abbott Labs splitting into two companies, so I'm trying to figure out how best to position myself when this happens.
    14 Feb 2014, 11:59 AM Reply Like
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