GlaxoSmithKline says it has rejected a £ 50 billion bid from Unilever to acquire a consumer health joint venture with Pfizer, “fundamentally underestimating” the business and its future prospects. rice field.
GSK said it rejected three approaches, including a £ 50bn offer consisting of £ 41.7bn in cash and £ 8.3bn in Unilever shares received on December 20th.
“The GSK board unanimously concluded that the proposal was not in the best interests of GSK shareholders because it fundamentally underestimated the consumer health business,” the company said in a statement.
“Therefore, GSK’s board of directors will continue to focus on implementing the proposed split in the consumer healthcare business, leading consumers in a new independent global category to be achieved in mid-2022, subject to shareholder approval. Establish a company. “
“We approached GSK and Pfizer on the possibility of a business acquisition,” Unilever said on Saturday.
“”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.
Unilever has made numerous attempts to engage with GSK over the past few months, and has taken many approaches during that period, according to those who are directly aware of the issue. Goldman Sachs advises GSK. Centerview Partners and Deutsche Bank are working with Unilever.
The £ 50bn bid was first reported by Sunday Times.
The likelihood of a successful deal depends on the market and what GSK believes is the value of the consumer business. Analyst estimates range from £ 37bn to £ 48bn for units. GSK said on Saturday that it expects unit sales to increase by 4-6% over the medium term at a constant exchange rate.
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 medicines, and Otribin decongestants.The new company will be led by GSK Insider Brian McNamara The board will be chaired Dave Lewis, Former Tesco and Unilever CEO.
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.
Marco Tariko, Co-Chief Investment Officer of Bluebell Capital Partners, is one of the activist investors asking GSK to consider selling the unit, and the bid was “a strategy for such a quality business. Target and financial buyer “.
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 ever in the London market, integrating the FTSE 100’s third-largest company with a division that would otherwise be in the top 20. This is only comparable to Vodafone’s acquisition of Mannesmann in Germany. AB InBev purchased SABMiller in 2016 in 1999.
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.
GSK rejects Unilever’s £50bn offer for consumer unit Source link GSK rejects Unilever’s £50bn offer for consumer unit
The post GSK rejects Unilever’s £50bn offer for consumer unit appeared first on California News Times.