© Reuters. FILE PHOTO: Overview Outside the GlaxoSmithKline (GSK) Brentford (GSK) headquarters on 4 May 2020 in London. REUTERS / Matthew Childs
By Mrinmay Dey and Siddharth Cavale
(Reuters) – Unilever (NYSE :), a consumer goods giant, said it was approaching Glaxosmithkline (LON 🙂 About the purchase of a handful of consumer goods by the pharmaceutical group after a newspaper reported that it had withdrawn a 50 billion-pound ($ 68.4 billion) bid from a newspaper.
Unilever, in a statement issued on Saturday, reaffirmed its approach to potential business acquisitions due to the low share price of the group, which has been plagued by some investors.
“GSK Consumer Healthcare is a leader in the attractive healthcare healthcare environment and would be a strong strategic fit as Unilever continues to reshape its portfolio,” he said.
“There can be no assurance that an agreement will be reached.”
GSK declined to comment on the approach.
Earlier, Britain’s Sunday Times reported that Unilever’s bid for the business at the end of last year was worth around £ 50bn, which GSK and GSK considered too low. Pfizer (NYSE :), with a minority stake in the division.
Unilever, which owns brands such as Dove Soap and Marmite, understood that the approach of including Panadol painkillers and Sensodyne toothpaste for Glaxo’s home brand was considered unsolicited, he added.
Unilever’s offer did not include a takeover premium or a recognition of synergies, the newspaper said, adding that it is unclear whether the group will make a larger offer.
Unilever has come under pressure from investors after underestimating rivals like Procter & Gamble (NYSE :).
CEO Alan Jope recently got into a fight with British funds manager Terry Smith, who criticized the team for promoting performance credentials at the expense of performance.
Brokerage Jefferies last year put the total consumer unit valuation at £ 45 billion.
Deutsche Bank (DE 🙂 analysts said in June 2021 that any takeover bid for GSK’s consumer assets worth more than £ 45bn would be “eyes”.
Unilever had previously hinted that it was in the market for big deals. Jope said she was only interested in small purchases in growing areas such as luxury beauty and health and wellness.
($ 1 = £ 0.73)
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