GSK rejects 50-billion-pound Unilever offer for consumer assets


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GlaxoSmithKline on Saturday said it had rejected a £ 50 billion donation from Unilever for its purchasing arm, saying it “seriously violates” the business and its future prospects and that it will adhere to its plan to suspend the session.

Unilever confirmed the move earlier on Saturday, saying Glaxo’s team would be “very good” as it continues to redecorate its food, aesthetics and brand of home care.

This growth rate could be the largest in the world since the plague began, if it has. It could also transform Unilever into a more attractive and caring community, taking on the interests of Estee Lauder and L’Oreal, while at GSK, it could bring much-needed relief to the business crisis that has been raging over the past year.

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GSK said it received three businesses from Unilever, most recently on Dec. 20 with a net worth of $ 41.7 billion and 8.3 billion pounds in Unilever shares, which failed to reflect the value of the business and its potential.

“So the Board of GSK is still looking at fulfilling its liquidation of the Consumer Healthcare business … which is due to be completed by mid-2022,” he said, adding that he was confident the business would outperform global market growth. time.

The business of selling the group’s stock should be left in another list within this year.

Earlier, Britain’s Sunday Times reported that Unilever wanted a business created at the end of last year worth about $ 50 billion, and it was rejected by GSK and Pfizer, who have a small share in the sector.

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The Unilever method, which includes brands such as Dove and Marmite soap, Glaxo home-based products including Panadol painkillers and Sensodyne toothpaste was reported to have been unsolicited, the report added.

The petition did not include any funding for receiving or accepting synergies, the newspaper said, adding that it was not immediately clear if the group would pay more.

Dave Lewis, chief executive of GSK’s consumer health organization, declined to comment on the approach. Former UK grocer Tesco said the matter was with the GSK board.

Unilever declined to comment on whether it would come back with more money. “There can be no guarantee that any agreement will be fulfilled.” Brokerage Jefferies last year set the total value of all buyers at £ 45 billion.

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If the agreement goes through, GSK’s business can be integrated into Unilever’s Beauty and Personal Care business, which is a major source of sales.

Working in the group, which sells Dove, Lifebuoy, Ax and Vaseline, has been difficult during the epidemic because fewer people are leaving or taking part in parties, while the cost of plastics and petrochemical fuels is also limited.

In its most recent quarter, Beauty and Personal Care fell 1.3% while prices rose 3.9%.

Investor PRESSURE

Unilever CEO Alan Jope is being pressured to change its value proposition as it struggles to keep up with rising prices, especially in the upcoming, high-value markets.

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FTSE groups fell 10% last year compared to P&G growth by 18% and Reckitt 1.4% declining, despite a significant increase in household goods and services that benefited all three companies.

British fund manager Terry Smith, whose Fundsmith car is Unilever’s top 10, this week criticized the group for promoting stereotypes and disrupting operations.

Since taking over from Paul Polman as CEO in 2019, Jope set out Unilever’s vision of “brands and goals,” a way of thinking that would show that the company is focused on businesses and advertising that are aligned with a strong environmental goal or culture. people. ”even at a high price.

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“A company that feels it should explain the purpose of Hellmann’s mayonnaise in our minds has obviously lost the plot. The Hellmann brand has been around since 1913 so we think by the time consumers come to realize its purpose (destructive information – salads and sandwiches),” Smith said.

Smith was not immediately available for comment.

Jope, however, kept his promise to control the company. The company sold most of its Tea businesses, including Pukka Tea and PGTips to CVC Capital partners for $ 5 billion at the end of last year and has been looking to bring down the beautiful varieties that are slowly growing.

Business activity has also raised its head at GSK.

In April last year, US activist hedge fund Elliott Management disclosed billions of dollars to GSK, forcing CEO Emma Walmsley to investigate the company’s impeachment after leaving the COVID-19 vaccine competition.

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The young Bluebell Capital Partners businessman, who had done well in removing Danone CEO last year, also took part in GSK in September, prompting him to ask Walmsley to re-apply for his job, due to a lack of scientific expertise.

GREAT JOPE

For Unilever, the alliance will be a huge boost for Jope since he became CEO in 2019.

In the past he has criticized the notion that Unilever was in the big business market, saying instead the company will focus on small purchases in rapidly growing areas such as high beauty, plant nutrition and health and wellness.

If the deal with GSK passes, it will be second only to Unilever and the company will buy its nutritional beverage business, including Horlicks, India and other Asian markets for $ 3.3 billion in 2018.

The pharmaceutical industry, which has traditionally been the mainstay of the drug industry, is also in the process of major changes because several pharma companies no longer see a single benefit.

Johnson & Johnson in November unveiled plans to change its healthcare units, which include Listerine and Baby Powder, to focus more on medical and medical devices. Sanofi says its consumer segment will be a “stand-alone” business.

($ 1 = 0.7314 pounds)

(Additional reports by William Schomberg; Edited by Mark Heinrich, Jan Harvey and David Evans)

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