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Unilever stays put on bid to buy GSK’s biz even after a rejected offer

Unilever stays put on bid to buy GSK’s biz even after a rejected offer
Unilever stays put on bid to buy GSK’s biz even after a rejected offer

Unilever remains firm in its proposal to pursue the GlaxoSmithKline’s healthcare business even after facing rejection in its first bid.

Renowned British multinational consumer goods enterprise, Unilever, has reportedly confirmed its plans to continue pursuing the groundbreaking deal to acquire GlaxoSmithKline’s (GSK) healthcare business after having its £50 billion proposal get rejected.

The manufacturer of PG Tips, Marmite, Dove soap, Unilever, aims to own bigger segments of the hygiene and health care sector, and for the same, the conglomerate has set its eyes on GSK, which is parent to brands like Panadol, Sensodyne toothpaste, and centrum vitamins.

Unilever, while pointing towards synergies within the vitamin supplement and oral care business, stated that the acquisition will make way for a growth platform and create scale for the mutual portfolios in the U.S, India, and China, creating opportunities within other emerging markets.

 It has been speculated that Unilever has been in talks with bank officials regarding extra financial support to further sweeten its proposed bid for GSK.

Unilever mentioned that it has reached an understanding in which the future of the firm relies in materially escalating its presence across beauty, health, and hygiene.

As per credible sources, the news of acquisition in the market raised the share prices of GSK by 5%, but on the contrary, Unilever’s shares’ fell by 7%. Reportedly, Unilever is the third largest conglomerate listed on London’s FTSE 100 index with its worth being around £100 billion. A successful deal would see it taking over one of the largest units of the FTSE 100's fifth largest firm.

GSK, which runs a joint venture of healthcare operation with Pfizer, the US drug manufacturer, has already suggested that it wants to get rid of the operation.  

The management, however, has proposed to spin it off as an independent business floating on the stock market, GSK has plans to focus on vaccines and pharmaceuticals.

Source credit: https://www.bbc.co.uk/news/business-60022163

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.