Philip Morris International (PMI) has just perfected a new kind of vertical industrial concentration. The American manufacturer of Marlboro is on the verge of acquiring Vectura, a British pharmaceutical company which manufactures, among other things, asthma inhalers. From cigarettes, which cause respiratory diseases, among other things, to the care of the latter, the circle has come full circle.
On August 12, the board of directors of Vectura judged the offer to buy from Philip Morris International at 1.1 billion pounds (1.3 billion euros) “Fair and reasonable” and recommends that its shareholders vote in favor of it. “We are extremely shocked, reacts Sarah Woolnough, director of Asthma UK, a charity. It is completely absurd that PMI could make any money providing treatment for people he himself makes sick. “
Beyond the ethical question, this acquisition is the latest in an avalanche of capital transactions in the United Kingdom. In the first seven months of the year, there have been nearly 2,500 acquisitions of British companies, the highest level since 1998, according to Refinitiv, a company that compiles financial data. In value, at 198 billion dollars (168 billion euros), this is the highest level since 2007, the year before the great financial crisis. The vast majority of buyers come from the United States.
A wave that affects all sectors
The trend continues in the heart of summer. Morrisons supermarkets have been in the throes of a battle since June between the American investment funds Fortress and Clayton Dubilier & Rice, for an amount that will exceed 7 billion euros. Another fight is waged to get hold of Meggitt, a producer of components for airplanes and power plants. On Monday August 16, Ultra Electronics, a supplier to the Royal Navy (the British maritime armed force), was bought by its American competitor Cobham for 2.6 billion pounds.
In March 2021, the private security company G4S fell into the fold of the American Allied Universal for 3.8 billion pounds. The wave is affecting all sectors. “Many mid-sized companies are affected, which proves the good health of the UK mergers and acquisitions market”, notes Lucille Jones, analyst at Refinitiv.
In part, this influx of deals across the Channel only reflects a global trend. According to Refinitiv, mergers and acquisitions across the world are at their highest in the first seven months of the year, amounting to $ 3.6 trillion, surpassing the previous 2007 record ($ 2.9 trillion). dollars). With great interest rates, it’s never been easier to borrow cheap money. The venture capital industry benefits, increasing the number of operations.
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