FMCG major HUL NSE -0.13 % on Thursday said it expects the merger of GlaxoSmithKline Consumer Healthcare (GSKCH India) through an-all equity deal to complete in six-nine months due to pending clearances from various authorities.
The company has already initiated the process of getting approval and has already initiated integration teams, said HUL Chief Financial Officer Srinivas Phatak.
“Once we get the court’s approval, GSK Consumer NSE -0.25 % India would merge into HUL. That process, we expected to take between 6 to 9 months because we require various authorities clarences,” said Srinivas Phatak in a post earning conference call.
He further said: “We are now in the process of getting various approvals.”
On being asked as whether, the HUL has started the process of integration of brands, he said that it could not be done without approval.
However, Phatak also added: “We have initiated integration teams with HUL to first landing on how we want to do it and we can not do it physically till we get approval.”
He further added: “We would get approval in 6-9 months and only then we can really integrate to take the business forward. We can plan and get ready for that and we are doing that.
On December 3, 2018, HUL had informed that its board has approved the merger with GSKCH India through an-all equity deal, valuing the total business of the latter at Rs 31,700 crore.
The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSKCH India, which sells consumer healthcare products, including popular drink brand Horlicks.
Source: Economic Times