MARKET TALK: Reckitt Deal Makes Sense - Charles Stanley

21st Jul 2010 14:55

1355 GMT [Dow Jones] Reckitt Benckiser's (RB.LN) acquisition of SSL International (SSL.LN) makes both strategic and financial sense, says Charles Stanley. It will enhance Reckitt's ability to make further value-adding acquisitions in over-the-counter healthcare in the future and make the company's balance sheet more efficient. "Little has been said about revenue synergies or growth opportunities, other than in general terms, but it seems likely to us that the SSL business is likely to grow faster, over the next decade, than the household goods businesses, and of course the margins are likely to be higher. So we are wholly in favor of the deal." Has Reckitt at accumulate. Shares +3.2% at 3292p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 21, 2010 09:55 ET (13:55 GMT)