Is Colgate-Palmolive, the world's largest manufacturer of toothpaste, on the verge of merging with Reckitt Benckiser, the world's largest maker of household cleaners?
It appears so, according to recent news and analysts' reports.
On November 18, The Telegraph said that Reckitt is close to announcing a "multi-billion pound, cross-border transaction" and that Colgate is an "obvious candidate."
"Colgate is a very attractive company given its Latin American distribution, but its similar size to Reckitt would suggest a merger is more likely than an acquisition," Sanford Bernstein analyst Ali Dibadj told Reuters.
Bloomberg cited various analysts' reports that also point toward a Colgate-Reckitt deal. "Longer-term, the logic still stands" for a Reckitt-Colgate transaction, Credit Suisse analysts noted, according to Bloomberg.
Reckitt is also reportedly considering a deal with SSL International, according to the Telegraph and other sources.
Shares of Colgate jumped as high as $87.39 -- its highest for the year -- before closing at $85.87 on November 18, according to Reuters.
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