NEW DELHI: GlaxoSmithKline Consumer Healthcare (GSKCH India) on Wednesday said its merger deal with Hindustan Unilever Limited (HUL) has been approved by the Chandigarh bench of the National Company Law Tribunal (NCLT). Under the approved scheme of amalgamation between the two companies, the merger would be on the basis of an exchange ratio of 4.39 HUL shares for each GlaxoSmithKline share. The merger, via an all-equity merger, would peg the valuation of the total business of the latter at Rs31,700 crore.
“The effective date of the merger will be communicated upon being finalised in accordance with the procedure,” GlaxoSmithKline Consumer Healthcare (GSKCH) India said in a regulatory filing.
This essentially means all approvals are now in place. Earlier, the scheme has passed through other regulatory approval, including the Competition Commission of India.
HUL chairman Sanjiv Mehta believes the combined businesses of HUL and GlaxoSmithKline Consumer will be Rs45,000 crore from next year. The acquisition of GSKCH will not only give HUL ownership of brands such as Horlicks and Boost, but also strengthen its foods and refreshment segment, where HUL was lagging behind ITC Ltd for a long time. Notably, HUL’s board had approved the merger of GSKCH with the company in December 2018.