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Johnson & Johnson plans to split

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Miguel A. Rodriguez
Miguel A. Rodriguez
12 November 2021
Healthcare giant Johnson & Johnson to split into two companies

The world's largest health-products company by sales revealed earlier today that it plans to split the consumer health division from the pharmaceuticals unit. After the split, the consumer health business will become a new publicly traded company.

Joaquin Duato,  J&J's CEO starting January 2022, stated: "The new Johnson & Johnson and the New Consumer Health Company would each be able to more effectively allocate resources to deliver for patients and consumers, drive growth and unlock significant value."

Despite the split, the company plans to keep its total dividend "at least at the same level" – 2.6%.

The business separation is expected to be complete in 18 to 24 months. J&J will keep the pharmaceuticals and medical device units, expected to generate roughly $77 billion in revenue in 2021.

J&J is the second US company this week that announces a split, after General Electric. After the news hit the wires, Johnson & Johnson stock price added 4% before the opening bell.

Sources: reuters.com, wsj.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.