Mead Johnson Nutrition Co (NYSE:MJN ) today (Feb 10, 2017 | 6:20am |) officially accepted a takeover offer from British consumer products maker Reckitt Benckiser Group Plc (RBGLY).

Written by StockNews.com

The companies confirmed the move today after last week admitting that hot and heavy discussions were taking place.

The takeover price of $17.9 billion, or $90 in cash, represents a 29.5% premium over MJN’s last closing price prior to the takeover talks being disclosed. The transaction is expected to close during the third quarter of 2017.

Mead Johnson commented via press release:

“This transaction recognizes the value of our leading brands and strong, global organization,” said Kasper Jakobsen, MJN’s Chief Executive Officer. “As part of Reckitt Benckiser, a bigger health care focused business recognized for its marketing capabilities, we will derive benefits from both increased scale and diversification. We are pleased that our shareholders have an opportunity to recognize significant and immediate value and are excited for the new opportunities for our employees as part of a larger company.”

MJN, which makes baby formula under the Enfamil line, has proven attractive because of its growing presence in lucrative emerging markets, which have higher birth rates than developed nations and have only just begun adopting formula as an alternative to breastfeeding.

Mead Johnson Nutrition Co shares rose $3.96 (+4.77%) in premarket trading Friday. Year-to-date, MJN had gained 17.37% prior to today’s news, versus a 3.16% rise in the benchmark S&P 500 index during the same period.

MJN currently has a StockNews.com POWR Rating of B (Buy), and is ranked #23 of 62 stocks in the Food Makers category.