Unilever wanted to buy part of GSK for £ 50 billion, which it refused

The British food and consumer goods manufacturer Unilever wanted to buy its consumer health division from GlaxoSmithKline (GSK) for 50 billion pounds (about 1.5 trillion crowns). It operates as a joint venture in partnership with the American pharmaceutical company Pfizer. GSK announced that Unilever submitted a total of three offers last year, but the company rejected them as inadequate.

GSK stated that Unilever’s last offer was from December 20. All submitted offers were non-binding. The latter consisted of cash of £ 41.7 billion and Unilever shares worth £ 8.3 billion. However, GSK’s management decided to reject it as well, because, according to him, it underestimated the required division and its prospects.

Both Unilever and GlaxoSmithKline confirmed the circumstances of the offer shortly after the British newspaper The Sunday Times informed about it. Unilever said in a short statement that GSK Consumer Healthcare is a leader in an attractive consumer healthcare space and that it would fit into the Unilever Group strategically.

GSK intends to separate the Consumer Health Care Division from its organizational structure in the middle of this year. The division manufactures products such as Advil painkiller or Sensodyne toothpaste. Following the incorporation of a similar division of Novartis in 2015 and Pfizer in 2019, GSK’s consumer healthcare division achieved annual revenues of £ 9.6 billion (approximately CZK 282 billion).

Unilever sells a wide range of consumer goods, from Hellmann’s mayonnaise, to Lipton teas to Ben & Jerry’s ice cream. The most well-known body care brands include Dove soaps and Rexona deodorants.

Unilever also operates in the Czech Republic, where its profit fell by about a third to 36.9 million crowns the year before. The company’s net turnover then fell by five percent to 4.14 billion crowns.

Nestlé is investing almost 1.4 billion in a Czech meat substitute factory, and will expand production