GSK Rejects Unilever’s $68-Bn Bid for its Consumer Health BizBy
GlaxoSmithKline (GSK) has rejected a £50 billion ($68 billion) bid from Unilever to acquire GSK’s Consumer Healthcare business. Unilever reported on January 19, 2022 that it will not increase its bid.
GSK reported late last week (January 15, 2021) that it had received and rejected three proposals from Unilever, with the latest being the £50 billion ($68 billion) proposal made on December 20, 2021.
The Consumer Healthcare business is a joint venture between GSK and Pfizer, with GSK holding a majority controlling interest of 68% and Pfizer 32%.
The £50-billion ($68-billion) proposal comprised of £41.7 billion ($56.6 billion) in cash and £8.3 billion ($11.2 billion) in Unilever shares. GSK rejected all three proposals made on the basis that they “fundamentally undervalued” the Consumer Healthcare business and its future prospects.
GSK says the Board of GSK remains focused on executing its previously announced proposed demerger of its Consumer Healthcare business to create a new and independent consumer health company which, subject to approval from shareholders, is on track to be achieved in mid-2022.