According to sources FMCG major Hindustan Unilever on Monday said it will merge GlaxoSmithKline Consumer Healthcare Ltd with itself for an all equity transaction worth Rs 31,700 crore. Meanwhile the deal would bring the brand of Horlicks, a malted milk, in Hindustan Unilever's portfolio. Furthermore a regulatory filing by Hindustan Unilever said as per the deal, GSK Consumer's shareholders would get 4.39 shares of Hindustan Unilever's shares for each share they held in GSK consumer Healthcare.
Reportedly the merger with HUL values the total business of GSK Consumer Healthcare at Rs 31,700 crore. Moreover Sanjiv Mehta, Chairman and Managing Director, Hindustan Unilever said "We will drive significant cost synergies from a combination of supply chain efficiencies and operational improvements, go to market and distribution network optimization, scale in a number of cost areas such as marketing and streamlining of overlapping infrastructure."
Moreover the merger includes the totality of operations within GSK Consumer Healthcare India, including a consignment selling contract to distribute GSK CH India's Over the Counter and oral health products in India and merger lifted the stock price of both the companies and the shares of Hindustan Unilever closed at Rs 1,825.90 apiece, up Rs 72.30 or 4.12% from the previous close.
