J&J makes $2.1B offer to buy out Japanese cosmetics firm | Calamatta Cuschieri

Markets performance for yesterday, earnings report for Harley-Davidson and J&J makes an offer to buy out Japanese cosmetics firm

J&J is currently the second largest shareholder in the company, owning almost 20 percent through its affiliate
J&J is currently the second largest shareholder in the company, owning almost 20 percent through its affiliate

Markets on Monday

European stocks closed modestly lower Monday in trading reflective of a new period of volatility as investors remained nervous about budget wrangling between Italy and the European Union and Britain’s efforts to leave that trade bloc. The Stoxx Europe 600 closed down 0.4% to 359.74, after a modest gain on Friday, but a 0.6% rise for the week. German DAX 30 lost 0.3% to 11,524.34 and France’s CAC 40 off 0.6% to close at 5,053.31. The U.K.’s FTSE 100 gave up 0.1% to 7,042.80, but had been firmly higher on the day.

U.S. stocks closed mostly lower Monday, with the S&P 500 dropping for a fourth day in a row, as investors braced for a deluge of earnings against the backdrop of higher interest rates and concerns about global growth. The Dow Jones Industrial Average dropped 0.5%, to end at 25,317.41, while the S&P 500 shed 0.4%, to close at 2,755.88. The Nasdaq Composite Index however, rose 0.3% to finish at 7,468.63.

Harley-Davidson earnings

Harley-Davidson (HOG) and Caterpillar (CAT) will report results before the opening bell.

Both companies have been hurt by President Donald Trump's trade policy. Harley-Davidson was hit by EU tariffs in retaliation for US steel and aluminum taxes and its shares are down 18.3% so far this year.

Caterpillar has suffered even more, as investors worry about how the heavy equipment maker will cope with the tariffs. Its stock is down almost 24% since January.

Johnson and Johnson wants to own the rest of a Japanese cosmetic firm that it doesn’t already own

U.S. healthcare conglomerate Johnson & Johnson said on Tuesday it will buy all outstanding shares of Japanese skincare firm Ci:z Holdings Co Ltd that it does not already own for 230 billion yen (US$2.05 billion) in cash. The bid of 5,900 yen per share is a 55 percent premium.

The Company's skincare portfolio is expected to strengthen Johnson & Johnson's market presence in Japan with key customers, and more broadly bolster its offering in science-based, efficacious dermocosmetic brands. "Health and beauty consumers are actively seeking science-based innovation to improve their skin," said Jorge Mesquita, Worldwide Chairman, Johnson & Johnson Consumer. "This transaction will maximise value creation for Johnson & Johnson's Consumer business by bringing in an agile innovation model and rapidly accelerating sales through our global commercialization expertise."

 

Disclaimer: This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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