Boost and Horlicks are now HUL brands
Boost and Horlicks are now HUL brands – Hindustan Unilever completes merger with GlaxoSmithKline Consumer Healthcare including Boost and Horlicks, are now finally under Hindustan Unilever Limited (HUL) after 15 months announcing the merger with GlaxoSmithKline Consumer Healthcare Ltd (GSKCH), iconic brands, the corporate on Wednesday said that it’s completed the merger and approved the acquisition of the Horlicks Brand for India from GSK for consideration of ₹3,045 crores.
Around 5.7 percent of the merged entity. As a result, Unilever’s stake in HUL will reduce to 61.9 percent GSK Plc (including its other group companies) will now own from the sooner 67.2 percent. GSK’s 3,500-strong nutrition team also will join HUL.
This merger was announced on December 3, 2018, and was subject to obtaining necessary approvals, which have now been secured. This marks one of the most important deals within the FMCG sector in recent times.
“This (merger) will enable HUL to utilize cash on its record and make value for shareholders. additionally, it’ll enable HUL to drive better salience during a local context. the opposite brands which were under the ownership of GSKCH like Boost, Maltova and Viva come to HUL’s brand portfolio by virtue of the merger,” HUL said during a statement.
For making profitable foods and Refreshment (F&R) business in India by leveraging the megatrend of health and wellness merger is in line with HUL’s strategy to create a sustainable future.
Currently, HUL’s F&R business consists of tea, coffee, ice-cream, and packaged foods, and with this merger, nutrition will become a neighborhood of this division. Nutrition is going to be a separate unit within the F&R division, said Srinivas Phatak, CFO, HUL.
IT integration next year
The full IT integration of the merger is probably going to be completed by July 2021. HUL won’t pay any brand royalty, because it has utilized the cash to have the brand, said Phatak.
HUL will partner with GSK via a consignment selling arrangement to distribute brands of the GSK Consumer Healthcare family in India.
By April-end or early May, HUL hopes to finish all procedural formalities concerning the merger, and by this point, GSK’s complete legal entity and its shares will cease to exist and become HUL shares, said Phatak. From an operational perspective, the merger will inherit effect from April 1, 2020.
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