Fifteen months after announcing the merger with GlaxoSmithKline Consumer Healthcare Ltd (GSKCH), FMCG major Hindustan Unilever on Wednesday, 1st April 2020 confirms that it has successfully completed the merger of GSKCH with HUL.
“This (merger) 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. 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 in a statement.
HUL announced the merger of GlaxoSmithKline Consumer Healthcare Ltd with HUL on 3rd December 2018, in line with the company’s strategy to evolve the Foods and Refreshment portfolio into higher-growth segments, subject to obtaining necessary approvals.
All approvals have now been secured. As previously indicated, following completion of the transaction, Unilever’s holding in HUL will be diluted from 67.2% to 61.9%., HUL said in a statement
Unilever has also completed the related acquisition of Horlicks brands rights and other Consumer Healthcare nutrition assets from GSK in other predominantly Asian markets. Bangladesh closing is expected to follow later this quarter, subject to local procedures.
HUL added, “by April-end or early May, company hopes to complete all procedural formalities relating to the merger, and by this time, GSK’s complete legal entity and its shares will cease to exist and become HUL shares. From an operational perspective, the merger has come into effect from April 1, 2020.”
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