Unilever wins race for GSK’s health drinks biz

Horlicks products

Horlicks products

GSK Consumer India is valued at Rs 31,700 crore as per the deal and the detailed evaluation will be completed in 12 months.

The deal reflects a push by global companies to cash in on India's fast growing economy, including sectors such as retail, consumer goods and technology.

With this deal, HUL will now own iconic brands such as Horlicks and Boost. GSK Consumer Healthcare and HUL have agreed to a share exchange ratio of 4.39 shares of HUL for every one share of GSK Consumer India, the two companies said in separate filings with the stock exchanges.

Both GSK and Unilever, who hold 72.5% and 67.2% of the shares in GSK India and HUL, respectively, intend to vote in favour of the merger.

Total consideration receivable by GSK is therefore expected to have a value of approximately £3.1 billion where £2.6 billion for merger between GSK India and Hindustan Unilever Limited and £150 million for 82 per cent shares of GSK Bangladesh and £416 million for the sale of brand rights and GSK's consumer healthcare nutrition activities in certain other territories.

HUL will distribute GSK's over-the-counter and oral health products under a consignment selling agreement for 5 years.

The transaction is conditional on the approval of the merger by the shareholders and creditors of both GSK India and HUL. The turnover of our Foods & Refreshments business will now exceed Rs. 100bn and we will become one of the largest F&R businesses in the country. Sanjiv Mehta, chairman and CEO, HUL, said: "It will add huge amount of lustre to the great brands we already have in our portfolio". "In the past few quarters, Unilever/HUL in India is increasingly getting aggressive on inorganic expansion - Indulekha hair oil, Adityaa ice cream", Abneesh Roy, research analyst, senior vice president, institutional equities, research, Edelweiss Securities, said in a note.

The transaction is aligned with Unilevers stated strategy of increasing its presence in health-food categories and in high-growth emerging markets.

Unilever expects to achieve substantial synergies.

The FMCG giant feels that factors such as a large and young population, rising affluence & disposable incomes, persistent nutritional needs apart from a huge potential for market development given the low penetration in rural areas can be exploited through its massive distribution network.

The deal entails multiple transactions.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

Seen in the United Kingdom as a nighttime drink created to help pensioners sleep, in Asia it is mainly fed to children at breakfast. These forward-looking statements speak only as of the date of this announcement.

Recommended News

  • Epic Games launches online store to compete with Valve's steam Store

    Epic Games launches online store to compete with Valve's steam Store

    The Epic Games store is open to games built with any engine, and the first releases span Unreal , Unity and internal engines. The first is that whatever the premiere concerns, you may be able to check it out right away after the reveal in-game.
    Manchester United v Arsenal

    Manchester United v Arsenal

    In comparison, Liverpool spent £167m, Chelsea £128m, Arsenal £68m and Manchester City £63m while Tottenham did not sign a single new player.
    'Arguable case' government committed contempt over Brexit legal advice

    'Arguable case' government committed contempt over Brexit legal advice

    A so-called " meaningful vote " on May's deal will take place in the Commons following parliamentary discussions on December 11. The House of Commons voted 311-293 in favour of a motion censuring the government over failing to release the legal advice.
  • Qualcomm says NXP deal is off

    Qualcomm says NXP deal is off

    The Trump administration had unsuccessfully lobbied the Chinese government earlier this year to give its blessing to the deal. Since Qualcomm has significant ties with Chinese OEMs, the chip maker had no choice but to agree with China's decision.
    Senator: 'zero chance' Saudi prince not involved

    Senator: 'zero chance' Saudi prince not involved

    CIA Director Gina Haspel is expected to brief Senate leaders Tuesday, according to a source. Trump has frequently blamed trouble getting things done on such a state.
    Stephen Colbert Mocks Trump During George H.W. Bush Tribute

    Stephen Colbert Mocks Trump During George H.W. Bush Tribute

    The dog, " Sully ", a specially trained Golden Labrador Retriever, is seen next to the 41st president's flag-draped coffin. An invitation-only funeral service, which the Trumps will attend, is set for Wednesday at Washington National Cathedral.
  • China stays silent as Trump talks up trade truce

    China stays silent as Trump talks up trade truce

    President Donald Trump and Chinese President Xi Jinping at a gathering of world leaders in Argentina. Despite Mnuchin's earlier comments on President Trump leading trade negotiations with China, .
    100 million users credentials stolen

    100 million users credentials stolen

    Quora users whose passwords were invalidated are asked to reset the password the next time they try to sign in to the service. If you want to simply delete your Quora account, visit your account privacy settings and choose "Delete Account".
    Kerr after Warriors' loss: 'One of my worst performances'

    Kerr after Warriors' loss: 'One of my worst performances'

    At one point in the second quarter, the Pistons led by as many as 11 points and they entered half-time with a 54-46 advantage. Reggie Jackson set the early tone with eight points in the first four minutes, and Detroit never trailed in a 107-88 victory.
  • Russia Launches First Manned Voyage to ISS Since Rocket Accident

    Russia Launches First Manned Voyage to ISS Since Rocket Accident

    CBC News Network will also broadcast the interactive special featuring Canadian astronaut Chris Hadfield. NASA's Anne McClain , Russia's Oleg Kononenko , Canadian Space Agency's David Saint-Jacques.
    Qualcomm Snapdragon 855 is designed for 5G and AI

    Qualcomm Snapdragon 855 is designed for 5G and AI

    We'll be hearing more on the Snapdragon 855 here at Qualcomm's SD Summit, out in super-sunny and super-buggy Hawaii. The hotspot is powered with the Qualcomm Snapdragon X50 5G modem .
    Former Patriots CB Brandon Browner sentenced to 8 years in prison

    Former Patriots CB Brandon Browner sentenced to 8 years in prison

    The 34-year-old was arrested back in July after he was accused of breaking into his ex-girlfriend's apartment and assaulting her. He was voted to the Pro Bowl in 2011 and was an original member of Seattle's Legion of Boom defense.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.