Unilever renews interest in GSK consumer products

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Jan 17 (Reuters) – Unilever reaffirmed its interest in GlaxoSmithKline’s consumer products on Monday, citing “strong strategic complementarity”, despite the pharmaceuticals group’s rejection of its initial offer and poor stock market reception of the project of at least 50 billion pounds sterling (around 60 billion euros).

Unilever shares lost more than 6% at the start of the session while GSK gained more than 5%.

GSK confirmed over the weekend that it had rejected Unilever’s initial bid for its consumer healthcare business, which includes the Sensodyne, Advil and Nicorette brands.

“The acquisition would create a major growth platform for the new portfolio in the United States, China and India with new opportunities in other emerging markets,” said Unilever, citing the potential for synergies in oral care and vitamins.

On Saturday, GSK rejected the initial approach of its compatriot, judging that its offer “fundamentally undervalues” the activities concerned and confirming its intention to list them on the stock exchange in a new entity this year.

The consumer division of GSK, of which the American Pfizer owns 32%, achieves an annual turnover of nearly ten billion pounds.

Unilever has been in discussions with banks for possible funding for an upgraded bid, Bloomberg News reported on Sunday, citing people familiar with the matter.

Present in care and beauty products, with Dove, Ax and Rexona among others, but also in food and household products, Unilever assures Monday that it is determined to maintain “strict financial discipline” in the event of a takeover.

He adds that any acquisition would be followed by the sale of activities or brands whose margins are lower than those of the products purchased.

(Report Pushkala Aripaka in Bangalore and Keith Weir in London, French version Marc Angrand, edited by Blandine Hénault)


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