GlaxoSmithKline’s consumer sector could enter a full-scale bidding war after rejecting three offers from Unilever at the end of last year
- It is understood that Unilever is preparing a fourth offer for business
- Bidding Wars Can Attract Private Equity Companies
- GSK boss Emma Walmsley plans to list the consumer healthcare sector
- Unilever falls more than 6%, while GSK shares almost 5% in early trading
GlaxoSmithKline’s consumer sector could enter a full-scale bidding war after rejecting three proposals from Unilever at the end of last year.
Unilever is preparing a fourth offer for businesses that own brands such as Aquafresh Toothpaste and is understood to be spinning out of GSK this year.
However, key analysts said rival bids could emerge and other consumer healthcare companies would “execute the numbers.”
Sale: GSK’s Emma Walmsley (pictured) plans to list consumer healthcare divisions
Bernstein’s Bruno Montein said Unilever should modify its business and the purchase is a “pretty bad idea.”
He said the bidding war could attract private equity firms, but premium prices may stop them after GSK rejects Unilever’s £ 50bn offer. Analysts value the business at around £ 45 billion.
Victoria Scholar, head of investment for interactive investors, said the transaction appears to be “still on the card.”
“Unilever needs to raise bids to around £ 55 billion and act swiftly to avoid bid wars from rival private equity buyers who are likely to focus on counter offers,” she adds. I did.
Emma Walmsley, GSK’s CEO, plans to list the consumer healthcare division with annual sales of £ 9.6 billion in London, and GSK maintains its stake.
However, she is under pressure from activist investor Elliott Management to begin the process of selling the unit.
Private equity companies such as Advent International, CVC Capital Partners and KKR are also looking at this business. ‘Unilever is still running. You would expect other consumer health companies to do the numbers, “Montane said.
And he warned that Unilever, which makes Ben & Jerry’s ice cream and dove soap, is suffering from slowing growth, even if it buys GSK’s consumer products.
He said:’More than 80 percent of Unilever will still be their old business.
“Buying a new business doesn’t mean it’s more likely to fix the remaining 80% or more of the business,” he said, as GSK is growing slowly and it’s difficult for Unilever to grow sales. I added that.
“They should continue to focus on fixing their core business.”
Rival bidders are circling the arms of GSK consumers after Unilever makes a shocking offer
https://www.dailymail.co.uk/money/markets/article-10408449/After-Unilever-makes-shock-offer-rival-bidders-circling-GSK-consumer-arm.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Rival bidders are circling the arms of GSK consumers after Unilever makes a shocking offer