Danone eyes Mead Johnson acquisition to expand global baby formula reach

UK – Danone has reportedly been exploring the acquisition of Mead Johnson, the infant nutrition business owned by Reckitt Benckiser, in a move that could reshape the global baby formula market.

According to French media reports, Reckitt has opened discussions with Danone as it reviews strategic options for Mead Johnson, nearly a decade after acquiring the business in 2017 for US$17 billion.

Reckitt’s ownership of Mead Johnson has been marked by disappointing growth and mounting legal challenges in the United States.

The infant formula division has struggled to deliver the diversification benefits Reckitt originally expected, while ongoing litigation and weak performance have increased pressure on the company to streamline its portfolio and focus on higher-margin core operations.

In 2025, Reckitt Benckiser pushed ahead with plans to sell its nutrition division, which includes the Mead Johnson infant-formula business.

Reported by company officials, the sale could potentially be finalized within the 2025 fiscal year. CEO Kris Licht revealed last week that the company has already attracted interest from prospective buyers, signaling a smooth progression in the disposal process. 

The decision comes as Reckitt shifts its focus toward its core brands in consumer health and hygiene, such as Durex and Finish dishwasher products.

The nutrition division, acquired by Reckitt in 2017 for US$17.9 billion, has been labeled “non-core” by Licht since July. Alongside Mead Johnson, the company is also looking to offload its essential home division.

Despite being the smallest revenue contributor compared to the hygiene and health units, the nutrition business remains part of Reckitt’s financial outlook for 2025, with projected group-wide like-for-like sales growth of 2-4%. 

For Danone, the deal could offer a strategic opportunity to deepen its presence in early-life nutrition, one of the company’s most important business segments.

Danone already reported organic sales growth of 7.4% in 2025 in its nutrition activities, and acquiring Mead Johnson would significantly expand its footprint in the United States while complementing its existing positions in Latin America and Asia-Pacific.

Industry analysts say the acquisition would make strategic sense despite concerns over Mead Johnson’s uneven growth record.

Barclays analyst Warren Ackerman described the discussions as more exploratory than imminent, but noted that the transaction could materially strengthen Danone’s global infant formula business. Mead Johnson currently represents around 15% of Reckitt’s revenue, generating roughly £2.1 billion annually.

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