The scheme of amalgamation between the two companies was approved through an-all equity deal, valuing the total business of HUL at ₹ 31,700 crore
GlaxoSmithKline Consumer Healthcare (GSKCH India) said its merger deal with Hindustan Unilever Limited (HUL) has been approved by the fair trade regulator CCI. The Competition Commission of India (CCI) has approved the scheme of amalgamation between the two companies, through an-all equity deal, valuing the total business of the latter at ₹ 31,700 crore.
“We would like to inform you that the CCI has, vide its letter dated January 23, 2019 (received on January 25, 2019), accorded its approval for the amalgamation of the Company with HUL,” GSKCH India said in a regulatory filing.
“A copy of the order of the CCI is awaited,” it added. Still, the scheme has to pass through various regulatory and other approvals including SEBI and NCLT. “The scheme remains subject to the receipt of other necessary statutory and regulatory approvals under applicable laws, including by the NSE, SSE, SEBI, NCLT and the respective shareholders and creditors of HUL and the company,” GSKCH India informed.
On December 3, Anglo-Dutch FMCG giant Unilever had announced the acquisition of health food portfolio, including popular brands Horlicks and Boost, from GlaxoSmithKline in India and over 20 other markets for 3.1 billion pounds (about ₹ 27,750 crore). Under the deal, Unilever’s Indian arm, HUL is acquiring GSK CH India via an all-equity merger, valuing the total business of the latter at ₹ 31,700 crore. GSK CH India is the market leader in the health food drinks (HFD) category, with popular brands such as Horlicks and Boost.