Unilever and GSK are doing the splits on the stock market within the major European stocks of the Stoxx 600. In London, this Monday, the action of the consumer goods group lost nearly 7%, the largest drop in the pan- European, when the title of the pharmaceutical laboratory climbs by 4%.
On Saturday, Unilever confirmed that it had approached GlaxoSmithKline with a view to buying the pharmaceutical group’s consumer healthcare arm in a £50 billion (€60 billion) bid. Offer rejected by GSK. He even received three offers from Unilever, the last, dated December 20, comprising a component of 41.7 billion pounds in cash and 8.3 billion in securities.
A “modest” bonus, according to Jefferies
According to Sunday Times, the offer was also deemed too low by Pfizer, which holds a 32% stake in the capital of this consumer health branch of the British pharmaceutical group. Jefferies analysts, too, consider the amount a bit “cheap”, because it only presents a premium ” modest » by around 10% given the takeover in perspective and probable synergies.
The renewed interest by Unilever, this Monday, for this subsidiary, ” GSK Consumer Healthcare [étant] a leader in the attractive consumer healthcare space and would be a great strategic fit as Unilever continues to reshape its portfolio “, logically suggests a one-upmanship on the part of the group of consumer products. And who says paying more says revaluation of the target, GSK indirectly, and releases on the stock market of the initiator of the offer, which sees the positive effect of its acquisition reduced by a higher price.
” The acquisition would create a scale growth platform for the new portfolio in the United States, China and India with new opportunities in other emerging markets “says Unilever, which cites as an example the potential for synergies in oral care and vitamins.
The food division on borrowed time
GSK’s consumer health arm includes painkiller Panadol, painkiller Advil, smoking cessation lozenges Nicorette and toothpaste Sensodyne, among others. It achieves an annual turnover of nearly ten billion pounds. Unilever is, for its part, known for its Dove, Ax and Rexona brands in health and beauty products.
If the operation is carried out, the British could, as part of the refocusing of its activities around health, sell assets in its food division, with lower margins, such as the ice cream brands Ben & Jerry’s, Solero and Magnum, or more high-end Grom and Talenti. It could even divest itself, if necessary, of this entire food business, which concerns Knorr bouillon cubes, Marmite spread, Colman’s, Maille mustards and Hellmann’s mayonnaise. A division that generates nearly 6 billion pounds of sales.