Hindustan Unilever to merge with GSK Consumer Healthcare
Hindustan Unilever Ltd will merge withi GSK’s healthcare business in India. This was announced in New Delhi on Monday. The merged entity will be worth Rs 31,700 crore.Updated: Dec 03, 2018 17:23 IST
Hindustan Unilever Ltd will merge with GSK’s healthcare business in India. This was announced in New Delhi on Monday. The merged entity will be worth Rs 31,700 crore.
The merger will include all operations within GSK Consumer Healthcare India Ltd, which will include the consignment selling contract to distribute GSK Consumer’s over-the-counter and oral health products in India.
With brands such as Horlicks and Boost in its inventory, GSK Consumer Healthcare India is the market leader in the health food category. Its product portfolio, with a long history in India, is supported by strong nutritional claims. Horlicks was originally introduced in India in the 1930s.
The merger of GSK Consumer with HUL will be on a basis of a share swap ratio of 4.39 HUL shares for each GSK Consumer share, implying a total equity value of Rs 31,700 crore for 100 per cent of the latterOnce the new HUL shares are issued, Unilever’s holding in HUL will be diluted from 67.2 per cent to 61.9 per cent, the company said.
“With this proposed strategic merger with GSK Consumer Healthcare India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers. I’m confident that this merger will create significant shareholder value through both revenue growth and cost synergies,” HUL CMD Sanjiv Mehta said in a statement.
“The turnover of our F&R (food and refreshment) business will exceed Rs 10,000 crore and we will become one of the largest F&R businesses in the country. We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete,” Mehta added.
First Published: Dec 03, 2018 17:19 IST