Novartis India has announced that it would sell its over-the-counter (OTC) division to GlaxoSmithKline Consumer Private Limited, Indian entity of UK-based GlaxoSmithKline Ltd, under the agreement for business transferring between Novartis and GlaxoSmithKline signed last year. On January 13, 2015, the Board of Directors of Novartis India Ltd, has approved the transfer of its OTC Division to GlaxoSmithKline Consumer Private Limited.
"The Board approved on 13 January 2015 the transfer of the OTC Division as a going concern by way of a ‘slump sale’ to GSK CPL (affiliate of GSK) for a consideration of Rs 109.7 crore, on or before 22 October 2015, as well as closing of the global joint venture transaction between Novartis AG and GSK,” stated a company release.
As part of its global portfolio transformation, Novartis AG, agreed with GlaxoSmithKline plc, UK on 22 April 2014 to create a global consumer healthcare joint venture. In the joint venture, GSK will own 63.5% stake while Novartis would own the remaining 36.5% holding.
Last year, a multi-layered deal was signed between GlaxoSmithKline and Novartis, where GSK would acquire Swiss major's vaccine business for $7 billion, while the latter would purchase GSK's cancer drugs portfolio.
On December 12, Competition Commission of India had approved the deal, saying the deal will not have appreciable adverse effect on competition in India.
FOR COMPLETE REPORT READ: Novartis India to sell OTC business to GSK Consumer for Rs 109 cr
"The Board approved on 13 January 2015 the transfer of the OTC Division as a going concern by way of a ‘slump sale’ to GSK CPL (affiliate of GSK) for a consideration of Rs 109.7 crore, on or before 22 October 2015, as well as closing of the global joint venture transaction between Novartis AG and GSK,” stated a company release.
As part of its global portfolio transformation, Novartis AG, agreed with GlaxoSmithKline plc, UK on 22 April 2014 to create a global consumer healthcare joint venture. In the joint venture, GSK will own 63.5% stake while Novartis would own the remaining 36.5% holding.
Last year, a multi-layered deal was signed between GlaxoSmithKline and Novartis, where GSK would acquire Swiss major's vaccine business for $7 billion, while the latter would purchase GSK's cancer drugs portfolio.
On December 12, Competition Commission of India had approved the deal, saying the deal will not have appreciable adverse effect on competition in India.
FOR COMPLETE REPORT READ: Novartis India to sell OTC business to GSK Consumer for Rs 109 cr