Short deal supply, lure of emerging markets justify Paras-type premiums
This article was originally published in Scrip
Executive Summary
Reckitt Benckiser's acquisition of India's Paras Pharmaceuticals for Rs32.6 billion (£460 million), valued at about eight times sales, reiterates what seems to be a growing mantra for large multinationals fighting off sluggish growth in the West - bag the best available in emerging markets, even if it's at a significant premium.