FMCG major HUL Monday said its board has approved the merger with GlaxoSmithKline Consumer Healthcare (GSKCH India) through an-all equity deal, valuing the total business of the latter at Rs 31,700 crore.
The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSKCH India, which sells consumer healthcare prodcts, including popular drink brand Horlicks.
"HUL has reached a definite agreement with GSKCH India in this regard," the company said in a statement.
Commenting on the development, HUL CMD Sanjiv Mehta, Chairman and Managing Director said: With this proposed strategic merger with GSKCH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers."
The merger of GSK CH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares for each GSK CH India Share, implying a total equity value of Rs 31,700 crore for 100 per cent of GSK CH India, it said