China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026 
Trump Backs Nexstar–Tegna Merger Amid Shifting U.S. Media Landscape 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
Uber Ordered to Pay $8.5 Million in Bellwether Sexual Assault Lawsuit 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Reckitt Benckiser announced last weekend that it is selling its Mead Johnson Nutrition company in China to Primavera Capital Group. The deal was said to be valued at $2.2 billion.
As per Reuters, while Primavera Capital has already bought Reckitt Benckiser’s infant formula and child nutrition business in China, the latter will still retain an eight percent stake in the China unit of Mead Johnson Nutrition.
Reckitt to incur a loss on the sale
Reckitt Benckiser is expecting to receive around $1.3 billion from the sale, but it is also anticipating a net loss of $3.5 billion on the disposal. The loss is said to be due to intangible assets and re-measurement of goodwill.
In any case, it was in March when it was first reported that Reckitt Benckiser was considering the sale of the Chinese unit of Mead Johnson. The company observed a sluggish sale and launched a strategic review of its infant formula and child nutrition business in China.
In the end, the sale was decided as sales are not going up anywhere, and Reckitt cited the intense competition with local baby formula brands as one of the reasons for the slow income. Also, the low birth rates in China was also blamed for the dwindling sales as there are fewer babies to feed with the infant formula.
The deal between Reckitt and Primavera
As the sale was revealed, Reckitt Beckinser shared that the deal with Primavera Capital includes the sale of the company’s production factories in Guangzhou, China, and at Nijmegen in the Netherlands. Moreover, a royalty-free perpetual and exclusive license of Mead Johnson and Enfa brands in China, including Enfagrow, Enfamil, and Enfinitas, are also included in the agreement.
Then again, it should be noted that this is only in Greater China, as Reckitt still owns and will continue to sell Mead Johnson and Enfa products in other parts of the world.
"We are pleased to acquire the Greater China business of Mead Johnson, a long-established and renowned multinational infant and children nutrition brand,” Primavera Capital Group founder and chairman, Dr. Fred Hu, said in a press release. “As the controlling shareholder, Primavera is committed to serve tens of millions of Chinese mothers and babies and safeguard their well-being.”
Finally, the Reckitt Beckinser and Primavera Capital deal is expected to close within the second half of this year.
