Glaxo to Buy Tesaro for

Sarla Buch
03 Dec, 2018
New York City

GlaxoSmithKline agreed to acquire the U.S.-based Tesaro for

[R]4:00 PM Frankfurt – GlaxoSmithKline agreed to acquire the U.S.-based Tesaro for £4 billion and divested its Indian consumer healthcare nutrition brands to Unilever. Kier Group plans to launch rights issue of about £264 million. McColl''s Retail plunges 30% on flat sales and profit warning.[/R]

In London trading, FTSE 100 index increased 119.44 or 1.7% to 7,100.08 and in Frankfurt the DAX index jumped 239.48 or 2.1% to 11,496.09.

In Paris, CAC 40 index advanced 50.61 or 1% to 5,054.69.

GlaxoSmithKline Plc plummeted 6.1% to 1,522 pence after the U.K.-based pharmaceutical products maker today agreed to acquire the U.S.-based commercial-stage cancer drug maker Tesaro for $75 per share or £4 billion or $5.1 billion in cash.

The transaction is expected to complete in the first quarter of 2019.

Separately, GlaxoSmithKline announced that it had completed the sale of its Indian Horlicks and other consumer healthcare nutrition brands to Unilever Plc for about £3.1 billion or $3.8 billion.

The proposed transaction involves the merger of GSK India with Hindustan Unilever and after the transaction GSK will own approximately 5.7% in the company.

The transaction is expected to complete by the end of 2019.

Kier Group Plc plunged 5.9% to 478.20 pence after the U.K.-based construction services provider said that it plans to launch a £264 million rights issue and offer 33-for-50 shares. The rights offering is still not decided.

McColl''s Retail Group Plc plunged 29.9% to 83.23 pence after the U.K.-based convenience stores operator forecasted fiscal 2018 operating profit to decline to £35 million from £44 million and same store sales in the final quarter were flat from the same period a year ago.

However, the retailer said net debt at the year-end on November 25 is expected to be lower than the estimated £100 million.

RPC Group Plc declined 4.5% to 684.80 pence after the U.S.-based private equity firm Bain Capital confirmed that it will not make an offer for the U.K.-based plastic products maker.