FMCG major HUL Monday said its board has approved the merger with GlaxoSmithKline Consumer Healthcare (GSKCH India) through an-all equity deal, valuing the total business of the latter at Rs 31,700 crore.
Commenting on the development, HUL CMD Sanjiv Mehta, Chairman and Managing Director 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) business will exceed Rs 10,000 crore.
"We will become one of the largest F&R businesses in the country," Mehta added.
The merger of GSK CH India 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 health products in India.
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