Glaxo to Split and Combine Consumer Unit with Pfizer, Ceconomy Tumbles

Sarla Buch
19 Dec, 2018
New York City

Ceconomy tumbled on weak fiscal forecast. Glaxo plans to split into two businesses and the U.S. rival Pfizer agreed to combine consumer health care unit. Natixis booked

[R]4:00 PM Frankfurt – Ceconomy tumbled on weak fiscal forecast. Glaxo plans to split into two businesses and the U.S. rival Pfizer agreed to combine consumer health care unit. Natixis booked €260 million of losses and provisions on Asian derivatives.[/R]

In London trading, FTSE 100 index advanced 62.93 or 0.9% to 6,764.52 and in Frankfurt the DAX index gained 54.52 or 0.5% to 10,795.35.

In Paris, CAC 40 index increased 22.70 or 0.5% to 4,776.78.

888 Holdings Plc soared 8.5% to 184.40 pence after the U.K.-based online gaming and entertainment provider said that its board remains confident that full-year operating profit will be in-line with its expectations.

The online gaming services provider said in December it had acquired the remaining 53% stake in the All American Poker Network for $28 million.

Ceconomy AG tumbled 14.1% to €3.08 after Germany-based consumer electronic retailer reported total sales in the year ending in September increased 0.8% from a year ago to €21.6 billion.

Net profit in the year surged to €206 million from €23 million in the same period a year ago and diluted earnings per share jumped to €0.63 from €0.07.

The consumer electronics retailer said operating profit declined 8.9% to €650 million from €714 million.

Ceconomy forecasted fiscal 2019 total sales “may edge up” from a year ago and net working capital is expected to “decline moderately” and operating profit to “fall slightly.”

GlaxoSmithKline Plc jumped 4.5% to 1,514 pence after the U.K.-based drug maker said it plans to split into two businesses, one for prescription drugs and vaccines and the other one for over-the-counter products.

GlaxoSmithKline and the U.S. rival Pfizer Inc agreed to combine their consumer health care units and eventually spinoff the joint venture with estimated sales of £9.8 billion or $12.41 billion.

Glaxo will hold a 68% stake and Pfizer will control the remaining 32%.

The transaction is expected to close in the second-half of 2019.

The drug maker forecasted fiscal 2018 earnings per share to surge 184% while 2019 earnings per share growth is expected to decline 3.63%.

Natixis SA declined 7.4% to €4.12 after France-based investment bank and insurer reaffirmed fourth-quarter net revenues to drop 1% to €2 billion from the same period a year ago and booked €260 million of losses and provisions related to Asian derivatives.

Natixis confirmed the €1.5 billion special dividend despite the negative non-recurring items.

Swiss Re gained 1.7% to 89.68 Swiss francs after Switzerland-based reinsurer said total economic losses from natural and man-made disasters in 2018 are estimated to be $155 billion, down from $350 billion in 2017.

The insurer said estimated natural catastrophes and man-made disasters will cost the insurance industry around $79 billion in 2018, the highest in a decade.