Mumbai, December 03: After months of negotiation and race among global FMCG majors, Hindustan Unilever has emerged as an official winner to bag GlaxoSmithKline (GSK) consumer's India business, including the popular brands like Horlicks and Boost. Hindustan Unilever Limited (HUL) board has approved the scheme of amalgamation with GSK Consumer India, under which the two FMCG majors will merge. HUL will acquire GSK's Horlicks and other brands for as much as EURO 3.3 Billion. Unilever Emerges as Top Contender for Horlicks, Say Reports.

"The Board of Directors of Hindustan Unilever Limited (HUL) today approved a scheme of amalgamation between the Company and GlaxoSmithKline Consumer Healthcare Limited (GSK CH India) subject to obtaining requisite approvals from statutory authorities and shareholders," HUL said in a filing to Bombay Stock Exchange. Counterfeit HUL Products: 7 Arrested in Mumbai For Selling Fake Pond's Face Cream & Lakme Eyeliner.

The merger of GSK Consumer with HUL will be on a basis of share swap ratio of 4.39 HUL shares for each share of GSK Consumer India. The deal values GSK at Rs 31,700 crores or at Rs 7,540 per share which is expected to be completed in 12 months, subject to shareholder approvals and regulatory.

"The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the mega trend of health and wellness. GSK CH India is the market leader in the HFD category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims," HUL said in a release.

Emma Walmsley, Chief Executive Officer, GSK, said, “Horlicks has made a significant contribution to GSK and to the health of consumers across India for many decades and we believe Unilever is well placed to maximise its future potential. Proceeds from this transaction will be used to support the Group’s strategic priorities, including investing in our pharmaceutical business.”

It is noted that nearly 85-90 per cent of total Horlicks sales come from India with a market share of 43.3 per cent in the malt-based health drinks. At 3:30 pm on Monday, HUL shares were up 4.68 per cent to Rs 1836.00 apiece. GSK Consumer Healthcare shares were also trading 4.08 per cent higher at Rs 7,565 apiece.

(The above story first appeared on LatestLY on Dec 03, 2018 04:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).