Boxing Day may have inaugurated, at the end of December, the start of the winter sales across the Channel, but out of the question for the British GlaxoSmithKline to sell off its consumer health branch. The pharmaceutical manufacturer confirmed this weekend that it had rejected the Unilever group’s 60 billion euro takeover offer for GSK Consumer Healthcare, its joint venture with Pfizer bringing together non-prescription drugs, toothpaste and parapharmacy. A rebuff that does not seem to have discouraged his compatriot, who had already made two other proposals to Big Pharma.
The food and hygiene products giant renewed its interest in the operation on Monday, January 17, justifying its approach. “Consumer health is a very complementary category for Unilever, with good potential for synergies and a number of development opportunities,” emphasizes the group. The specialist in consumer products, owner of Knorr soups, Dove soaps and even Ben & Jerry’s ice cream, will however still have to loosen the purse strings to afford Advil tablets and Nicorette patches.
According to GSK, its consumer health products division, which generated a turnover of 11.5 billion euros in 2021, and would have a growth potential of 4% to 6% in the medium term, is worth much more than the 60 billion put on the table. If the public announcement of these negotiations has caused a stir among Unilever investors, divided as to the relevance of the offer initiated by Alan Jope, the group’s boss, it has, on the contrary, given a boost whip to GSK by leaving the door open to possible bidding from other potential buyers.
Refocus activities
Several candidates would be in the running according to the Bloomberg agency. A valve for Emma Walmsley, at the head of the pharmaceutical laboratory since 2017, and whose splitting of GSK into two separate companies, bringing together, on the one hand, prescription drugs and vaccines, and on the other, the products of over-the-counter consumer healthcare, is one of the major projects of its mandate. GSK plans to list the latter entity – 68% owned by GSK and 32% by Pfizer – on the stock exchange during the course of 2022.
By splitting its assets to focus on pharmaceutical products, the British laboratory is continuing a fundamental movement, initiated by the giants of the pharmaceutical industry several years ago.
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