GSK Set To Buy Novartis Stake In Joint Venture For $13 Billion, Might Lose Horlicks Brand
GSK has entered into an agreement with Novartis to take complete control of their joint venture, known as Consumer Healthcare. As of now, the seller (Novartis) has a 36.5 per cent stake in the joint venture. GSK is set to buy the stake for a total of $13 billion, following which the UK-based acquirer will be able to reap the full fruits of the JV's future performance. The Consumer Healthcare Joint Venture, which is being sold, was formed between GSK and Novartis on approval of shareholders in 2014. (Also Read: GSK Buys Novartis Stake In Consumer Healthcare Venture For $13 billion)
As GSK is set to buy Novartis stake in consumer healthcare, here are eight things to know:
3. The buyout is also conditional to the government's green signal to the deal. It is expected that there is no governmental orders restraining or prohibiting the buyout.
4. GSK has agreed to pay a break fee of $200 million if the buyout doesn't go through. This might happen if one of the three situations arises. One: The GSK Board changes, withdraws or qualifies its recommendation. Two: GSK shareholders vote on the buyout and do not approve it. Three: no vote is held on the buyout by August 31, 2018.
5. Completion of the buyout is currently expected to occur during the summer of 2018. A circular setting out details that include the resolution seeking shareholder approval will be sent to GSK shareholders.
6. In order to aid the buyout, GSK might sell Horlicks and other consumer nutritional products, it said in its statement. The company further stated that it might also consider the sale of its Indian subsidiary, GlaxoSmithKline Consumer Healthcare.
7. The buyout by GSK of Novartis stake removes this uncertainty for the Consumer Durables, and improves the Group's ability to plan allocation of capital to its other priorities.Â
GSK reaches agreement with Novartis to acquire full ownership of Consumer Healthcare Business. Press release: https://t.co/CuJcTFc77N pic.twitter.com/w2d8dsLemn— GSK (@GSK) March 27, 2018
8. "The proposed transaction addresses one of our key capital allocation priorities and will allow GSK shareholders to capture the full value of one of the world's leading Consumer Healthcare businesses. Most importantly it also removes uncertainty and allows us to plan use of our capital for other priorities, especially pharmaceuticals R&D,"Â GSK chief executive officer of Emma Walmsley said.
-
'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.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
