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Unilever eyes GSK’s consumer goods arm in possible 50 billion-pound deal, Health News, ET HealthWorld

admin by admin
January 16, 2022
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Unilever eyes GSK’s consumer goods arm in possible 50 billion-pound deal, Health News, ET HealthWorld
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Consumer goods large Unilever stated it had approached Glaxosmithkline about shopping for the pharmaceutical group’s consumer goods arm, after a newspaper reported {that a} 50 billion-pound ($68.4 billion) bid it made had been rebuffed.

Unilever, which has been below fireplace from some buyers for the group’s underperforming share worth, confirmed the strategy a couple of potential acquisition of the enterprise in a press release on Saturday.

“GSK Consumer Healthcare is a leader in the attractive consumer health space and would be a strong strategic fit as Unilever continues to re-shape its portfolio,” it stated.

“There can be no certainty that any agreement will be reached.”

GSK declined to touch upon the strategy.

Earlier, Britain’s Sunday Times stated the Unilever bid for the enterprise made late final yr was price roughly 50 billion kilos, and had been rejected as too low by GSK and Pfizer, which owns a minority stake in the division.

The strategy by Unilever, which owns manufacturers comparable to Dove cleaning soap and Marmite, for Glaxo’s portfolio of family manufacturers together with Panadol painkillers and Sensodyne toothpaste was understood to have been unsolicited, it added.

Unilever’s bid didn’t embrace any takeover premium or recognition of synergies, the newspaper stated, including that it was not clear whether or not the group would make a better provide.

Unilever has come below stress from buyers after underperforming rivals comparable to Procter & Gamble.

Chief Executive Alan Jope lately received right into a spat with British fund supervisor (*50*) Smith, who criticised the group for selling sustainability credentials on the expense of efficiency.

Brokerage Jefferies final yr put a valuation for the entire consumer unit at 45 billion kilos.

Deutsche Bank analysts stated in June 2021 that any takeover bid for GSK’s consumer property price greater than 45 billion kilos can be “eye-watering”.

Unilever has beforehand shot down ideas that it was in the marketplace for huge offers. Jope has stated he was solely in small, bolt-on acquisitions in fast-growing areas comparable to luxurious health and beauty and wellness.





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