Anglo-Dutch consumer goods company Unilver PLC has emerged as the top contender for the nutrition business of GlaxoSmithKline consisting of popular brands like Horlicks in India, media reports has suggested.
Anglo-Dutch consumer goods company Unilver PLC has emerged as the top contender for the nutrition business of GlaxoSmithKline consisting of popular brands like Horlicks in India, media reports has suggested.
Ending almost four-month long auction process in which several companies including CocaCola, Kraft Heinz and Nestle joined the intense bidding process, Unilever emerged as the leading company, said the reports.
According to the Financial Times report, GlaxoSmithKline has entered into "exclusive negotiations" with Unilever to sell its nutrition business for the USD 4 billion leaving behind the Vevey-headquarted Swiss food and beverages firm Nestle.
Quoting sources, Financial Times said that Unilever has beaten rival bid from Nestle, which was looking to build on its market-leading position in powdered hot drinks, where it already sells Milo and Nesquik.
If the deal is sealed in favour of Unilever, it would further consolidate the position of its Indian subsidiary Hindustan Unilever, which is expanding its portfolio in the food & beverages segment.
Earlier, Atlanta-based cola major CocaCola Co was also in the race to acquire the malt-based health drink Horlicks from GlaxoSmithKline (GSK).
Horlicks in India is largely sold through GlaxoSmithKline Healthcare in India, in which GSK owns 72.5 per cent stake.
GSK has put Horlick on the block after it had decided to buy 36.5 per cent stake in the consumer healthcare business of Novartis for GBP 9.2 billion.
The company is considering to sell Horlicks and other nutrition brands to fund the acquisition.
When contacted, a HUL spokesperson declined to comment on the issue.
Last month Kraft Heinz Co had announced to sell its India business, which include the popular health drink brands Complan and Glucon-D to Ahmedabad-based consumer products firm Zydus Wellness for a consideration of Rs 4,595 crore.
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