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Considering potential transaction says GSK Consumer Healthcare; Unilever confirms development

Press Trust of India  |  New Delhi 

Thursday confirmed that "consideration is being given to a potential transaction" amid reports that Plc has emerged as the top contender to acquire the nutrition of UK-based Plc.

Hindustan Unilever, the Indian arm of Unilever, confirmed that the company was in the race to acquire Plc's nutrition products, including the popular drink Horlicks, but said it was bound by "confidentiality obligations" from disclosing details at this point of time.

In March this year, Plc (GSK) had announced a strategic review of and its other nutrition products following its acquisition of 36.5 per cent stake in the consumer healthcare of for GBP 9.2 billion.

is considering to sell and other nutrition brands as part of plans to fund the acquisition.

The majority of and other nutrition products sales are generated in by (GSKCH).

"The company can confirm that consideration is being given to a potential transaction, which includes a merger of the company," GSKCH said in a clarification to BSE.

It, however, did not disclose details and the identity of although reports suggested that Anglo-Dutch consumer goods firm PLC has emerged as the top contender for the nutrition of GlaxoSmithKline.

In a separate clarification to BSE over the reports, Hindustan said, "With reference to this particular case, we wish to state that we are bound by the confidentiality obligations at this point in time."

The company further said,"...considering confidentiality norms, it will not be correct for us to provide any further details at this stage."

GSKCH also said, "There can be no assurance that a transaction will result from the review process nor has any decision on the matter been made by the company."

had reported that Unilever has beaten rival bid from Nestle, which was looking to build on its market-leading position in powdered hot drinks, where it already sells Milo and Nesquik.

If the deal is sealed in favour of Unilever, it would further consolidate the position of its Indian arm Hindustan Unilever, which is expanding its portfolio in the and beverages segment.

Earlier, Atlanta-based cola was also in the race to acquire the malt-based drink Horlicks from GSK.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 29 2018. 20:55 IST