Unilever not deterred by rejection of $68B bid for GSK's consumer unit
Unilever said it will continue to pursue a takeover of GlaxoSmithKline's consumer unit, which includes Advil painkillers and Sensodyne toothpaste, after being rejected on three bids — the last of which was worth around $68 billion.
Why it matters: This is all about two corporate giants looking to restructure.
- GSK last summer announced plans to spin out the consumer assets, following activist investor pressure to focus more on pharma.
- Unilever, meanwhile, will soon reveal a new strategic plan that may include divestitures of some lower-margin businesses (e.g., food, where its brands include Marmite, Hellmann’s and Ben & Jerry's), moves that were enabled by last year's change from a dual nationality to U.K.-only structure.
State of play: GSK said the Unilever bid undervalues the business, which it still plans to take public later this year.
- Reuters, however, reports that GSK would listen to offers above $81 billion.