GSK rejects Unilever's acquisition proposals for consumer healthcare business
GSK plc announced it has rejected three unsolicited acquisition proposals from Unilever for its consumer healthcare business. The company stated the proposals fundamentally undervalued the business and its future prospects.
GSK plc confirmed on January 15, 2022, that it had received and rejected three unsolicited, conditional, and non-binding proposals from Unilever to acquire its consumer healthcare business. The latest proposal, made on December 20, 2021, valued the business at £50 billion, composed of £41.7 billion in cash and £8.3 billion in Unilever shares.
The GSK board stated that the proposals fundamentally undervalued the consumer healthcare business and its future prospects. The board's assessment was conducted in light of the company's financial planning for a proposed demerger of the business, which is on track for mid-2022.
The consumer healthcare division, a joint venture between GSK and Pfizer with GSK holding a 68% controlling interest, has undergone significant transformation since 2014. It reported annual sales of £9.6 billion in 2021 and holds a portfolio of leading brands with global reach.
GSK projects the business will achieve sustainable organic sales growth of 4-6% over the medium term. The company intends to proceed with its plan to create a new, independent consumer company and will share further details at a Capital Markets Day on February 28, 2022.