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HUL board apporves merger with GlaxoSmithKline Consumer Healthcare

Press Trust of India  |  New Delhi 

FMCG Monday said its board has approved the merger with Consumer Healthcare (GSKCH India) through an-all equity deal, valuing the total of the latter at Rs 31,700 crore.

The transaction is an all equity merger with 4.39 shares of being allotted for every share in GSKCH India, which sells consumer healthcare prodcts, including popular drink brand

"has reached a definite agreement with GSKCH in this regard," the company said in a statement.

Commenting on the development, HUL Sanjiv Mehta, said: With this proposed strategic merger with GSKCH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers."

Post the acquisition, he said the turnover of the company's Foods and Refreshment (F&R) will exceed Rs 10,000 crore.

"We will become one of the largest F&R businesses in the country," Mehta added.

The GSKCH delivered total turnover of around Rs 4.200 crore in the year ended March 2018, primarily through its and Boost brands, the statement said.

The merger of GSK CH with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for each GSK CH India Share, implying a total equity value of Rs 31,700 crore for 100 per cent of GSK CH India, it said

Following the issue of new HUL shares, Unilevers holding in HUL will be diluted from 67.2 per cent to 61.9 per cent, it added.

The merger includes the totality of operations within GSK CH ndia, including a consignment selling contract to distribute GSK CH India's over-the-counter and oral products in India.

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

First Published: Mon, December 03 2018. 14:45 IST