GSK excludes Indian consumer healthcare business out of Novartis deal

The maker of Horlicks and Boost brands, GlaxoSmithkline Consumer Healthcare, has kept its Indian consumer healthcare business out of its recently signed global JV agreement with Swiss major Novartis AG. On April 22, 2014, GlaxoSmithKline Plc announced a 3-part inter-conditional transaction with Novartis AG involving its consumer healthcare, vaccines and oncology businesses. One part of the agreement deals with the creation of a consumer healthcare joint venture to hold GSK's Consumer Healthcare business and Novartis OTC Consumer Healthcare business. As a result of this deal, the newly created consumer healthcare JV business will have 2013 pro forma revenues of Pound 6.5 billion, with GSK having majority stake of 63.5%.
 
GlaxoSmithkline Consumer Healthcare Ltd has informed BSE that this consumer healthcare JV will exclude GlaxoSmithKline Consumer Healthcare Limited India, where GSK Plc will continue to hold directly its interests in the listed entity.
 
The other two parts of the global agreement deal with GSK acquiring Novartis’ global vaccines business and Novartis buying GSK’s oncology portfolio.