Abbott pledges backing for Mylan’s Perrigo bid
ABBOTT PARK, Ill. — Mylan’s largest shareholder has promised to back the company’s bid to buy Perrigo, which would help fend off Teva’s $40 billion takeover offer. Abbott Laboratories, which owns a 14.5% share, pledged Tuesday to vote its shares in favor of Mylan’s $32 billion offer to buy Perrigo.
Though Perrigo has rejected Mylan’s bid, Abbott’s backing will help Mylan fight off Teva’s $40 billion acquisition offer, as Teva has said its takeover would be contingent on Mylan dropping the Perrigo bid. Mylan has rejected Teva’s offer and has said that a deal between the two would violate U.S. antitrust laws. Abbott’s backing might ensure that Mylan won’t drop its bid for Perrigo.
“As both Mylan's largest shareholder and its partner through our continued manufacturing relationships, Abbott has considered the entire situation and we believe Mylan's standalone strategy and acquisition of Perrigo will further enhance its platform, is strategically compelling, value enhancing for shareholders, and offers a clear path to completion,” Abbott’s CEO and chairman Miles White, said. “In light of these factors, we will be voting in favor of the Perrigo transaction.”
CNBC’s Jim Cramer chats with CVS Health’s Merlo, Target’s Cornell about ‘win-win’ deal
NEW YORK — As the industry reeled from the groundbreaking news that CVS Health will acquire Target’s pharmacy business, “Mad Money” host Jim Cramer spoke with both CVS Health president and CEO Larry Merlo and Target chairman and CEO Brian Cornell to get some additional insight into the deal that Cornell described as a “unique, one-off opportunity.”
“I keep telling you about the looming consolidation in the healthcare space. And look, not only did we hear about Anthem potentially bidding for Cigna today, but we also learned that Cramer-fave CVS Health, one of the dozen stocks on my healthcare hot list, is paying $1.9 billion to buy and run all of Target’s in-store pharmacies and clinics,” Cramer said. “… I think it is a win-win.”
During the segment, Merlo explained that the deal not only aligns with CVS Health’s broader healthcare focus and is an appreciation of the retailization of healthcare, but it also enables CVS Health to expand its presence into new markets and will be at least 12 cents accretive in 2018 and beyond.
For Target, Cornell said the deal will, “Continue to strengthen our position in the wellness space because we now have an expert in the space, one that brings scale, experience and capabilities that, we think, will continue to bring a new level experience to our target guests”
Despite some speculation that this partnership marks the beginning of a trend for Target as it works to place a greater focus on its signature categories, Cornell was quick to set the record straight.
“It is absolutely a unique, one-off opportunity. The chance for us to partner with someone who brings scale, experience and expertise into the space and help us fulfill our commitment to wellness with the guest,” Cornell told Cramer. “But you should not expect to see this happen in other places.”
Report: Millennials love Walmart
Generation Y prefers to shop at Walmart over Target, Costco, Kroger, Whole Foods, and Trader Joe’s, according to Ad Age.
"Millennials now, as a generation, like Walmart the best, more so than Generation X, more so than boomers," Matt Kistler, Walmart’s senior VP-consumer insights and analytics, said.
Walmart is most popular among people under 24, as well as every store but Target among 25- to 34-year-olds, according to InfoScout, a provider of shopper insights with a nationwide panel of more than 170,000 shoppers.
Kistler, Walmart CEO Stephen Quinn, and Walmart.com VP of Merchandising Jill Ramsey attribute this data to Walmart’s convenience as a “one-stop shop,” the company’s online retail and mobile investments, and Walmart’s familiarity from millennials’ childhoods.
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