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Unilever all but drops bid for GSK consumer arm

01/20/2022 | 05:28am EDT

Unilever will not raise its $68 billion bid for the consumer arm of GlaxoSmithKline.

Wednesday's (January 19) update all but ended the takeover attempt.

British healthcare giant GSK had already rejected three offers from Unilever, the latest coming this week.

The company argued that the bid 'fundamentally undervalued' the unit and its potential.

GSK's consumer arm - in which U.S. drugmaker Pfizer holds a 32% stake - is home to brands like Panadol painkiller and Sensodyne toothpaste.

The company said it will now move ahead with a separate listing for the business later this year.

In a statement, GSK projected that it can see organic sales growth of 4 to 6%.

Last year it made sales of more than $13 billion.

The British drugmaker said it will share more details of its strategy for the consumer brands unit at an investor day in late February.

Unilever argued that GSK's case did not change its view on the arm's fundamental value.

Shares in Unilever rose around 1% in early European trade.

GSK fell about 2%.

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
GLAXOSMITHKLINE PLC 1.87% 1764 Delayed Quote.9.80%
ON SEMICONDUCTOR CORPORATION 0.70% 56.46 Delayed Quote.-16.87%
PFIZER, INC. 3.59% 52.47 Delayed Quote.-11.14%
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