ADRs Close Lower; Unilever Trades Actively

01/18/2022 | 05:11pm

International stocks trading in New York closed lower on Tuesday.

The S&P/BNY Mellon index of American depositary receipts fell 1.9% to 165.64. The European index declined 1.4% to 149.66. The Asian index fell 2.7% to 216.99. The Latin American index declined 1% to 189.39. And the emerging-markets index fell 2.4% to 357.82.

Unilever PLC's was among those whose ADRs traded actively.

BRF SA's ADRs closed down 4% at $4.20 after the Brazilian food producer said it has begun a global offering of as many as 325 million new shares.

A United Nations report on the forced landing by Belarus of a Ryanair passenger jet in May raises questions about the veracity of statements by its government about the events, in which it arrested a wanted dissident. The report, which was released to countries in the U.N.'s International Civil Aviation Organization and reviewed by The Wall Street Journal, presents facts gathered by a special review panel and doesn't pass judgments. Still, the paper presents a timeline and statements from parties involved that, when taken together, may cast doubt on Belarus's account of events. Ryanair's ADRs closed down 4% at $113.11.

Unilever PLC's ADRs fell 14% to $46.45 while GlaxoSmithKline PLC's rose 3% to $46.82 as investors reacted to Unilever's efforts to push further into health, beauty and hygiene products with a takeover approach for GlaxoSmithKline's consumer-health business. If successful, it would be Unilever's biggest acquisition and the company said it would be accompanied by significant divestitures as it looks to shift its portfolio toward higher-growth categories. Fitch Ratings cautioned an acquisition of the consumer-health business is likely to raise Unilever's debt to a level the company wouldn't be able to reduce it sufficiently to maintain an A rating category over 2024-2025, which could open the door to a downgrade into the BBB category. Fitch said it believes Unilever's offer would need to be raised to be successful, given Glaxo's refusal to consider it, resulting in a further deterioration of the company's expected credit metrics.

(END) Dow Jones Newswires

01-18-22 1710ET

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