P&G merges its beauty brands with Coty Inc.

Multinational consumer goods company Procter & Gamble (P&G) is selling 43 of its hair care, fragrance, and cosmetics brands to beauty products manufacturer Coty Inc. in a merger worth $12.5 billion, the Business Insider reported July 9.

P&G expects the deal to result in a one-time gain of $5 billion to $7 billion. P&G CEO A.G. Lafley said Coty Inc. will be a strategic company to house the brands and the people handling them. Meanwhile, analysts from Bank of America Merrill Lynch predicted that the deal would enable Coty to double its sales.

Among the brands involved in the merger are Gucci fragrances and CoverGirl makeup.

Mergers are strategic business transactions that can fortify your business amid market challenges. To get the most out of such business transactions in Cedar Rapids, enlist the help of a business lawyer at Arenson Law Group, PC, for assistance through the complex legal requirements these processes entail. Call us at (319) 363-8199 today.

CVS to take over Target’s pharmacies in acquisition deal

Retail pharmacy chain CVS announced its acquisition of Target’s pharmacy department for $1.9 billion, The Washington Post revealed on June 15.

The deal will result in the rebranding of Target’s 1,660 pharmacies and 80 in-store clinics to CVS. This would enable the drugstore chain to establish its market in key cities where their presence has been lacking, such as Denver, Seattle, and Portland. The deal will also allow Target to focus their strength on areas where they perform best, such as baby products and fashion.

The acquisition is pending approval by the regulators.

CVS currently has 7,800 drugstores nationwide. Last May, the pharmacy chain bought Omnicare for $10.4 billion.

Acquisitions like this could be beneficial not just to the acquiring company, but to the company selling as well. A business attorney at Arenson Law Group, PC, has the experience and resources to help you get the most out of a business deal. Call (319) 363-8199 to seek guidance on your business’ next moves today.

AbbVie aborts its plan to acquire Shire

U.S. drug company AbbVie is aborting its plan to acquire Irish pharmaceutical company Shire for $55 billion due to the U.S. Department of Treasury’s regulatory changes aimed at limiting the amount of businesses changing locations for lower business tax rates, Reuters reported on October 20.

Abbvie dropped its multi-billion dollar bid for Shire after its board of directors decided that the transaction will no longer be beneficial for the company. AbbVie’s Chief Executive, Richard Gonzales, said the amendments made by the Treasury “created an environment of risk and uncertainty” that would make the acquisition unfavorable for stakeholders.

The Chicago-based pharmaceutical company will pay a $1.64 billion breakup fee for deciding to withdraw from the deal.

Legislative changes may directly impact business transactions you are planning to undertake. Our team of Cedar Rapids business law attorneys at Arenson Law Group, PC, is always abreast with the current business law issues that may affect your business endeavors. Call us at (319) 363-8199 today to discuss your legal needs.