Reckitt clears way for GSK to buy $20bn Pfizer’s health business

British drugmaker GlaxoSmithKlein is in pole position to acquire US giant Pfizer’s consumer healthcare business after Reckitt Benckiser withdrew from bidding late on Wednesday.

However, shares in FTSE 100 firm Reckitt Benckiser jumped this morning after it pulled out of discussions with Pfizer Inc over buying its consumer healthcare business.

Pfizer has been hoping to fetch as much as $20bn for its unit, which includes brands such as Advil, Centrum multivitamins and Chapstick lip balm, according to the sources.

Rakesh Kapoor, chief executive, told media that Reckitt Benckiser approached “inorganic growth opportunities in a rigorous, disciplined, and financially responsible manner”, adding: “An acquisition for the whole Pfizer consumer health business did not fit our acquisition criteria and an acquisition of part of the business was not possible.”

“An acquisition for the whole Pfizer consumer health business did not fit our acquisition criteria and an acquisition of part of the business was not possible,” Reckitt said.