TheMotorcycleBoy wrote:LONDON, Jan 15 (Reuters) - Consumer goods giant Unilever (ULVR.L) said it had approached Glaxosmithkline (GSK.L) about buying the pharmaceutical group's consumer goods arm after a newspaper reported that a 50 billion pound ($68.4 billion) offer it made had been rebuffed.
"GSK Consumer Healthcare is a leader in the attractive consumer health space and would be a strong strategic fit as Unilever continues to re-shape its portfolio," Unilever said in a statement on Saturday.
"There can be no certainty that any agreement will be reached."
GSK did not immediately respond to a request for comment.
Earlier, Britain's Sunday Times said the Unilever bid for the business was worth roughly 50 billion pounds, and had been rejected as too low by GSK and Pfizer (PFE.N), which owns a minority stake in the division.
The approach by Unilever, which owns brands such as Dove soap and Marmite, for Glaxo’s portfolio of household brands including Panadol painkillers and Sensodyne toothpaste was understood to have been unsolicited, it added.
Unilever's bid did not include any takeover premium or recognition of synergies, the newspaper said. It was not clear whether Unilever would make a higher offer, it added.
see https://www.reuters.com/business/retail ... 022-01-15/
Matt
This doesn't surprise me. See this thread from a year ago: https://lemonfool.co.uk/viewtopic.php?f=33&t=27706
"Yes, the Consumer Healthcare business is a bit of a mess and has not really settled yet after the merger with Pfizer but it still generated revenue of £10bn with >20% operating margins. Put that on the same rating as Reckitt Benckiser, for instance, and you get a £32bn business on its own. Use Unilever as a benchmark and you get nearer to £40bn. The total market cap of GSK is currently < £64bn at a price of 1265p.
I feel there is inherent value that is not being reflected in the current market price. GSK looks very unloved and oversold to me. That doesn't mean it can't go lower, and probably will given current sentiment. Call me cynical, but I think the market will change it's tune later this year when all the investment banks line up for their piece of the pie for the demerger of the Pharma and Consumer healthcare divisions. And of course, once the demerger has taken place GSK becomes two bite sized pieces that make them ripe for acquisition by larger competitors. My personal opinion is that GSK likely won't exist in 3 years time in any form. In the meantime, I believe there is money to be made."
I agree with GSK and Pfizer here. At the current GSK market cap, a £50bn valuation for the Consumer Healthcare business does not include a lot of fat.
All the best, Si
!)