Highlights

• Haleon PLC completes a share repurchase agreement with Pfizer Inc, totaling £230 million.

• The transaction concludes Haleon’s £500 million share buyback program initiated in August.

• Pfizer’s stake in Haleon is reduced from 22.6% to 15%.

Haleon PLC {LSE:HLN} has announced a significant agreement to repurchase £230 million of its own shares from Pfizer Inc (NYSE: PFE, ETR: PFE). This transaction follows Pfizer's decision to offload a substantial stake in the consumer health company, which includes well-known brands such as Sensodyne. The shares will be acquired at a price of 308p each.

The repurchase includes approximately 30.2 million shares, valued at about £114.6 million, which will be canceled as part of Haleon's previously announced £500 million share buyback program. This move wraps up the buyback initiative launched in August, aimed at enhancing shareholder value through the reduction of outstanding shares.

As a result of this transaction, Pfizer's ownership stake in Haleon will decrease from 22.6% to 15%. This adjustment reflects the ongoing changes in Haleon's capital structure, aimed at solidifying its position in the competitive consumer health market.

In broader market developments, the FTSE 100 is projected to open higher, with futures indicating an increase of approximately 23 points. This positive outlook comes after a significant decline of nearly 84 points, or 1%, in the previous session, leaving the index at 8,236.95.

Overnight trading on Wall Street saw major indices finish higher, with the S&P 500 and Nasdaq both gaining 0.4%. The Dow Jones closed slightly above flat, and the small-cap Russell 2000 rose by 0.2%.

In the U.S., 2-year Treasury yields have increased following comments from Federal Reserve Chair Jerome Powell, who indicated no immediate plans for rapid interest rate cuts. This suggests a measured approach to monetary policy as the economy evolves.

Asian markets displayed mixed results, with the Nikkei in Tokyo rebounding by 1.9%, while India's Sensex remained flat, and Chinese markets were closed for the holiday.

Upcoming economic news includes key PMI data on manufacturing, euro area inflation figures, the U.S. ISM manufacturing index, and JOLTs job openings, providing insights into the economic landscape. Additionally, London company news will feature updates from Greggs.