In one of the biggest business deals of the year, Hindustan Unilever Ltd on Monday said that it will merge with GlaxoSmithKline's (GSK) healthcare sector in India in a transaction valuing their total business at ₹31,700 crore.
The company said in a statement that the merger will include the totality of operations within GSK Consumer Healthcare India Ltd, including a consignment selling contract to distribute GSK Consumer’s over-the-counter and oral health products in India.
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GSK Consumer Healthcare is a leading contributor in the health food category, with brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. The merger of GSK Consumer with HUL will be on the basis of a share swap ratio of 4.39 HUL shares for each GSK Consumer share.
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.
With this deal, the turnover of the Food & Refreshment business will exceed ₹10,000 crore, making Hindustan Unilever Ltd, one of the largest F&R businesses in India.
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