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Unilever to acquire GSK health food portfolio for 3.1 bn pound

Press Trust of India  |  New Delhi 

Anglo-Dutch FMCG giant Monday said it will acquire food and drinks portfolio of (GSK) in and over 20 other markets predominantly in for a consideration of 3.1 billion pound.

As part of the transaction, Unilever's Indian arm, Ltd (HUL) will acquire Consumer Healthcare Ltd (GSK CH India) via an all-equity merger, valuing the total of the latter at Rs 31,700 crore.

is the in the food drinks (HFD) category, with popular brands such as and Boost.

Announcing the deal that also covers "and 20 other predominantly Asian markets", said the transaction consists of an all-equity merger of HUL with the publicly-listed and acquisition of 82 per cent stake in GSK Ltd.

It also includes acquisition of certain other commercial operations and assets outside India, it added.

HUL said its board has given nod for the all-equity merger of GSK CH India, under which with 4.39 shares of HUL will be allotted for every share in

"The iconic brand has a deep heritage, credibility and resonance around the world. The acquisition is transformative for our Foods and Refreshment allowing us to enter the Foods Drinks category, further strengthening our position in health and wellness," Unilever President, Food & Refreshment said.

Chairman and said with the strategic merger the company will be expanding its portfolio through "great brands into a new category catering to the nutritional needs of our consumers".

"The turnover of our foods and refreshments (F&R) will now exceed Rs 10,000 crore and we will become one of the largest F&R businesses in the country," Mehta said.

HUL said at present the company's F&R business is at around Rs 2,400 crore.

"We expect this business to grow in double digit over the mediun term. This would be a significant opportunity," he added.

Stating that "has made a significant contribution to GSK and to the health of consumers across India for many decades", GSK said: "We believe Unilever is well placed to maximise its future potential".

She further said that proceeds from this transaction will be used to support the group's strategic priorities, including investing in our business.

GSK said India remained an important market for it and the company will continue to invest in growth opportunities for its OTC and Oral Health brands there, which include Crocin, Eno and Sensodyne.

"Following completion of the transaction, HUL will distribute GSK's OTC and Oral Health brands, that are currently distributed by GSK India," it said, adding this arrangement will be for a period of five years.

GSK said the transaction is conditional on the approval of the merger by the shareholders and creditors of each of and HUL.

Both GSK and Unilever, which hold 72.5 per cent and 67.2 per cent of the shares in and HUL, respectively, intend to vote in favour of the merger, it added.

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

First Published: Mon, December 03 2018. 16:40 IST
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