ADRs close lower; Unilever is actively negotiating
International stocks trading in New York closed lower on Tuesday.
The S&P/BNY Mellon Index of American Certificates of Deposit fell 1.9% to 165.64. The European index fell 1.4% to 149.66. The Asian index fell 2.7% to 216.99. The Latin American index fell 1% to 189.39. And the emerging markets index fell 2.4% to 357.82.
Unilever PLC was among those whose ADRs were actively trading.
BRF SA’s ADRs closed 4% lower at $4.20 after the Brazilian food producer announced it had launched a global offering of up to 325 million new shares.
A United Nations report into Belarus’ crash-landing of a Ryanair passenger plane in May raises questions about the veracity of its government’s statements about the events, in which it arrested a wanted dissident. The report, which was shared with countries at the UN’s International Civil Aviation Organization and reviewed by The Wall Street Journal, presents facts gathered by a special review panel and is non-judgmental. Yet the document presents a timeline and statements from the parties involved that, taken together, may cast doubt on Belarus’ account of events. Ryanair ADRs closed 4% lower at $113.11.
Unilever PLC’s ADRs fell 14% to $46.45 while those of GlaxoSmithKline PLC rose 3% to $46.82 as investors reacted to Unilever’s efforts to push health products higher , beauty and personal care with a takeover approach to GlaxoSmithKline’s consumer healthcare business. If successful, it would be Unilever’s biggest acquisition and the company said it would come with significant divestments as it seeks to shift its portfolio into higher-growth categories. Fitch Ratings has warned that an acquisition of the consumer healthcare business is likely to increase Unilever’s debt to a level the company would not be able to reduce enough to maintain an A rating category through 2024 -2025, which could open the door to a downgrade to the BBB category. Fitch said he believed Unilever’s offer would need to be increased to succeed, given Glaxo’s refusal to consider it, which would cause the company’s expected credit metrics to deteriorate further.