Unilever has approached GlaxoSmithKline on the possibility of acquiring a consumer health joint venture with Pfizer for £ 50 billion, which could be one of the largest deals in the London market.
“We approached GSK and Pfizer on the possibility of a business acquisition,” the Consumer Goods Group said on Saturday. The formal bid was one-sided. GSK declined to comment.
“”GSK Consumer Healthcare Is an attractive consumer health leader and will be a strong strategic fit as Unilever continues to restructure its portfolio. It’s unclear if an agreement will be reached, “Unilever added.
The Sunday Times, which first reported the bid, said dub soap and Magnum ice cream makers provided the sector with about £ 50 billion at the end of last year, but were rejected.
Analysts valued the business at around £ 47bn to £ 48bn, suggesting that the bid did not include significant premiums or savings due to synergies between the two consumer companies. increase.
Unilever declined to comment on whether to return with a higher bid.
GSK is preparing to spin off its joint venture with Pfizer, which manufactures Panador analgesics, Ceraflu cold and flu drugs, and Otribin decongestants.The new department Insider Brian McNamara The board will be chaired Dave Lewis, Former CEO of Tesco.
Activist investors, including US hedge fund Elliott Management Apply pressure GSK CEO Emma Walmsley will consider other options, including a sale, to see if it can bring significant benefits to shareholders. Walmsley plans to use the proceeds from the spin-offs to strengthen the vibrant pipeline of the pharmaceutical and pharmaceutical businesses.
Pfizer owns 32% of the division and GSK has announced it will be listed in London this year, but private equity groups are also considering potential purchases.
The acquisition of Unilever is one of the largest companies to date in the London market, integrating FTSE’s third-largest company with the top 20 if independent. Purchase of SABMiller in 1999 and 2016 by AB InBev.
This approach began with Unilever, already one of the world’s largest consumer goods groups, trying to regain momentum after sluggish sales.
Shares slumped after CEO Alan Jope took over in 2019, this week with top 10 investors Terry Smith Attacked the company “Working under the weight of business owners who are obsessed with publicly displaying their sustainability credentials at the expense of focusing on business fundamentals.”
Other investors have disputed this, but most agree that the company must deal with poor performance.this I agreed Last year, it sold the tea division, which was a drag on growth, to private equity group CVC for € 4.5 billion, but has not yet made a major acquisition under Jope.
In 2018, Unilever signed an agreement to acquire GSK’s health food and beverage business, including the Horlicks brand, for € 3.3 billion in India and other Asian markets. We have also acquired a range of smaller consumer health brands such as Smarty Pants, Olly and Onnit supplements, and Liquid IV drink mixes.
Unilever says there was an offer for GSK’s £ 50 billion consumer unit
Source link Unilever says there was an offer for GSK’s £ 50 billion consumer unit