Unilever made an offer of around £50 billion at the end of last year to take over the consumer division of GlaxoSmithKline (GSK), the British newspaper The Times reported on the basis of insiders. That offer, which is worth about 60 billion euros, was rejected by the boards of GSK and that of pharmaceutical company Pfizer, which has a minority stake in GSK. They thought the offer was too low. GSK’s consumer business makes Aquafresh toothpaste and Panadol painkillers, among others.
GSK plans to self-start the consumer segment this year and float it on the stock exchange. Analysts now estimate the asset’s value at around £48 billion, but GSK is holding an investor day in March and the information that comes out may allow the valuation to be adjusted.
According to the insiders, Unilever’s offer would not have included a premium on top of the value, which is usual. In addition, the cost benefits that the Unilever acquisition would bring were not taken into account. The advantages are usually also expressed in a higher price.
It is unclear whether there are still talks after the rejection and whether Unilever wants to make a higher offer. It is also not clear how Unilever wanted to pay for the acquisition. A large part would probably be paid in Unilever shares. How the current shareholders would react to this remains to be seen.
The Times: Unilever bids billions for consumer brands GSK
Source link The Times: Unilever bids billions for consumer brands GSK