GSK Buys Novartis Stake In Consumer Healthcare Venture For $13 billion
Zurich: GlaxoSmithKline will buy Novartis's 36.5 percent stake in their consumer healthcare joint venture for $13.0 billion in cash, the partners said on Tuesday.
The deal is set to complete in the second quarter subject to the necessary approvals.
GSK said the transaction with Novartis was expected to add to adjusted earnings from 2018 and to strengthen cash flow generation.
It said it would also start a strategic review of Horlicks and other consumer nutrition products. The review will include an assessment of its shareholding in Indian subsidiary GlaxoSmithKline Consumer Healthcare Ltd.
The joint venture was formed in 2015 as part of a sweeping revamp that included combining the Novartis over-the-counter business with the GSK consumer healthcare business.
Products include Panadol headache tablets, muscle gel Voltaren, and Nicotinell patches used by smokers who want to quit their habit.
"While our consumer healthcare joint venture with GSK is progressing well, the time is right for Novartis to divest a non-core asset at an attractive price," Novartis CEO Vas Narasimhan said.
GlaxoSmithKline last week quit the race to buy Pfizer's consumer healthcare business, endangering an auction the U.S. drugmaker hoped would bring in as much as $20 billion.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
