GSK Rejects Three Bids from Unilever for Consumer Healthcare Division – WWD

LONDON – Unilever want a moment GlaxoSmithKlineof the business, and it refuses to give an answer.

On Saturday, Unilever confirmed that it has approached GSK and Pfizer regarding a potential acquisition of their co-owned consumer healthcare business, one of the largest in the world and market leader in the US and Germany and India.

Three bids from the company, the latest of which were £50bn, were rejected by GSK, arguing that they undervalued the business. GSK’s consumer division, operated as a joint venture with Pfizer, includes Sensodyne toothpaste, Polident denture products, Advil pain reliever and Centrum vitamins.

GSK holds a majority controlling interest of 68% in the joint venture, while Pfizer has a 32% stake.

In the statement, Unilever called GSK Consumer Healthcare “a leader in compelling consumer healthcare and will be a strong strategic fit as Unilever continues to reshape its portfolio. It is not certain that any agreement will be reached.”

As reported, Unilever has Strong focus on high end beauty, but also about health, wellness and nutrition.

It is also looking to increase the value of its shares, which have fallen about 4.5% according to the director Alan Jope, whose mantra is people over profits and who is leading the sustainability crusade at the consumer giant, parent of brands ranging from Dove, Pond’s, Vaseline to Ben & Jerry’s.

On Friday, Unilever stock ended the day flat, closing at 39.37 pounds. GSK shares also closed unchanged at 16.43 pounds.

GSK announced last summer that it was looking to spin off its consumer healthcare division with a new stock exchange listing, while GSK would focus on the vaccines business. and your medicine.

Last month, GSK named him Mr Dave Lewis, a former Unilever executive and the man who turned Tesco’s ill health, as executive chairman of the new, post-spinoff consumer healthcare company. Lewis was a graduate intern at Unilever, and rose to become the company’s global president of personal care before leaving to become chief executive officer of Tesco.

In a separate statement released on Saturday, GSK confirmed that it had received three unsolicited, conditional and non-binding proposals from Unilever plc to acquire its healthcare business.

It said the latest proposal, received on December 20, is for a total buyback value of £50 billion, including £41.7 billion in cash and £8.3 billion in Unilever stock.

GSK said it rejected all three proposals “on the basis that they fundamentally underestimated the Consumer Healthcare business and its future prospects”.

The company said its board is “strongly focused on maximizing value for GSK shareholders and has carefully evaluated each Unilever proposal. In doing so, the board and its advisors evaluated proposals regarding completed financial plan reviews to support the proposed mid-2022 business classification, including sales growth prospects. ”

It says the healthcare business has an annual turnover of £9.6 billion by 2021, and “an exceptional portfolio of world-leading brands; global scale with footprint and distribution capabilities serving more than 100 markets; strong branding, innovation and digital capabilities; and offers a unique proposition that combines reliable science with human understanding. ”

GSK added that the business is well positioned to grow sustainably ahead of its categories in the coming years. “The fundamentals for the £150 billion consumer healthcare sector are strong, reflecting a growing focus on health and wellness, significant demand from an aging and affluent population. emerging middle class, and unmet consumer needs.

“The GSK Board of Directors is confident that the Consumer Healthcare business can deliver sustainable annual organic sales growth in the range of 4-6 percent (at foreign exchange rates). unchanged) in the medium term.”

GSK said it will continue with its proposal to categorize the consumer healthcare business, to create “a new, independent world leading consumer company, subject to shareholder approval.” , which is on track to be reached by mid-2022.” GSK Rejects Three Bids from Unilever for Consumer Healthcare Division – WWD


Linh is a Interreviewed U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Linh joined Interreviewed in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button