Mumbai (Maharashtra) [India], Apr 1 (ANI): India's largest fast-moving consumer goods company Hindustan Unilever Ltd (HUL) said on Wednesday it has successfully completed the merger of GlaxoSmithKline Consumer Healthcare Ltd (GSKCH) with itself.
The merger was announced on December 3, 2018 and was subject to obtaining necessary approvals, which have now been secured.
"This is one of the largest deals in the FMCG sector in recent times and will lead to significant value creation for all stakeholders," HUL said in a statement.
In addition, the board of directors on Wednesday approved HUL acquiring the Horlicks brand for India from GSK for a consideration of 375.6 million (about Rs 3,045 crore), exercising the option available in the original agreement made between Unilever and GSK.
"This will enable HUL to utilise cash on its balance sheet and create value for shareholders. In addition, it will enable HUL to drive better salience in a local context," said the statement.
The other brands which were under the ownership of GSKCH like Boost, Maltova and Viva come to HUL's brand portfolio by virtue of the merger.
HUL said the merger is in line with its strategy to build a sustainable and profitable foods and refreshment (F&R) business in India by leveraging the mega-trend of health and wellness.
Sanjiv Mehta, HUL's Chairman and Managing Director, said: "The merger gives us a unique opportunity to live our purpose and serve India where nutrition-related challenges form the largest causes of disease --malnutrition and micronutrient deficiency -- and aligns well with the government's ambitious Swasth Bharat and Poshan Abhiyan programmes."
In the current context, he said, the company's focus has been to ensure that all its people remain safe and it will do the best to keep supply lines running for essential products. "In these difficult times, we are joining hands with the government in the fight against COVID-19."
GlaxoSmithKline Consumer Healthcare Ltd's business delivered a total turnover of Rs 4,500 crore in the year ended March 2019, primarily through its Horlicks and Boost brands.
The merger of GlaxoSmithKline Consumer Healthcare Limited with HUL has been on the basis of an exchange ratio of 4.39 HUL shares for each GSKCH share. Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2 per cent to 61.9 per cent. (ANI)