European Markets Retreat, GSK Acquires H.I.V Drugs for $1.5B

Lucy Stoeva
18 Dec, 2015
New York City

European markets retreated on Friday after strong gains earlier in the week. GlaxoSmithKline agreed to acquire H.I.V. treatments drugs from Bristol-Myers Squibb for $1.5 billion. Intertek Group acquires FIT Italia.

[R]4:00 PM Frankfurt – European markets retreated on Friday after strong gains earlier in the week. GlaxoSmithKline agreed to acquire H.I.V. treatments drugs from Bristol-Myers Squibb for $1.5 billion. Intertek Group acquires FIT Italia.[/R]

European stock markets declined on Friday as the ongoing concerns over global growth outlook, declining oil and commodity prices, overshadowed the rate hike in the U.S. earlier this week.

The EU28 seasonally adjusted external current account recorded a surplus of €19.8 billion in October 2015, compared to surplus of €19.7 billion in September 2015 and €10.8 billion in October 2014, according to preliminary estimates from Eurostat.

In London trading, FTSE 100 index fell 21.17 or 0.4% to 6,081.29 and in Frankfurt the DAX index slipped 124.73 or 1.2% to 10,613.28.

In Paris, CAC 40 index dropped 31.86 or 0.7% to 4,623.11.

For the week, FTSE 100 index jumped 2.1% and the DAX index advanced 2.6% and the CAC 40 index increased 1.6%.

GlaxoSmithKline Plc fell 0.3% to 1,337 pence after the U.K. pharmaceutical company agreed to pay $1.46 billion to Bristol-Myers Squibb for its HIV drugs in two separate deals.

GlaxoSmithKline will pay $317 million for Bristol’s late-stage HIV drugs and additional $518 million, depending on development and commercial milestones.

GlaxoSmithKline will also pay $33 million for Bristol’s early-stage HIV medicines and $587 million upon reaching certain milestones.

Both transactions are expected to close during the first-half of 2016.

Intertek Group Plc slipped 1% to 2,710 pence after the quality and testing services provider agreed to acquire Food International Trust Italia, food quality assurance services provider to the retail and agricultural sectors.

Jersey Electricity Plc gained 1.7% to 450 pence after the U.K.-based electricity supplier said revenues in the year ending in September increased 1.6% from a year ago to £100.5 million.

Net income more than double from a year ago to £10.77 million and diluted earnings per share jumped to 35 pence from 16.1 pence.

RWE Npower HOLDINGS Plc, the power supply company, was fined £26 million by the U.K. regulator for sending inaccurate bills and for poor handling of complaints between 2011 and 2014.

The billing issues affected more than 500,000 customers and generated more than 2 million complaints.

UK regulator Ofgem said the £26 million would be divided between the worst affected customers and charity.

Volvere Plc surged 15.8% to 431.50 pence after the U.K. consultancy sold JMP Consultants Ltd, its transport planning and engineering division, for about £8 million in cash to Systra Ltd.

Volvere acquired JMP in May 2013 for about £400,000 and the provision of working capital loans. JMP has already repaid all loans and paid dividends to Volvere of £450,000.