Hindustan Unilever outruns Nestle and bags GSK’s nutrition business in its kitty. This being the country’s biggest consumer goods deal is an all equity deal.

Hindustan Unilever Ltd (HUL), incorporated in 1933 and is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products. Unilever has over 67% shareholding in HUL. HUL is India’s largest fast-moving consumer goods company with a heritage of over 80 years in India. HUL operates in four business segments, they are:

  • Personal care includes products in the categories of oral care skin care, soaps, hair care, talcum powder and colour cosmetics.
  • Home Care includes detergent bars detergent powders
  • Foods & Refreshments
  • Water purifier called Pureit

The shares of HUL are listed on BSE and NSE and current market cap is ~₹3,86,076 Crores.

GlaxoSmithKline Consumer Healthcare Ltd (GSK), is one of the largest players in the Health Food Drinks industry in India. The company is an Indian associate of GlaxoSmithKline plc UK one of world’s largest consumer healthcare companies. The company’s principal activities are to manufacture and distribute a wide range of healthcare foods drugs pharmaceuticals and dairy products. The products include malted milk food malted foods biscuits energy and protein foods milk powders ghee milk fluid and milk cream. The company has its manufacturing facilities located at Nabha in Punjab Rajahmundry in Andhra Pradesh and Sonepat in Haryana. Equity shares of GSK is listed on BSE and NSE and the current market cap is ~₹31,758 crores.

Transaction Structure

  • The merger of GSK Consumer Healthcare Ltd with HUL will be on based on an exchange ratio of 4.39 HUL shares for each GSK share.
  • Appointed date shall mean the same date as effective date or such other date that is mutually agreed in writing between GSK and HUL.
  • GSK consumer’ lead brand Horlicks will be acquired by Unilever i.e. the parent company of HUL

Shareholding Pattern

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