As several buyers pursue GlaxoSmithKline’s Indian consumer products business, the drugmaker has shortlisted Nestlé, Unilever and Coca-Cola for a second round of bidding, the Economic Times reports, citing people familiar with the discussions.
The business, which includes the drinks brand Horlicks, could fetch up to $4 billion, analysts have said. ET reported that the shortlisted companies are set to continue negotiations with GSK next week in London.
Other companies that reportedly shopped the deal include Kellogg, Mondelez, Danone, Reckitt Benckiser, PepsiCo and private equity firm KKR. The Telegraph last month reported Coca-Cola was preparing a multibillion-pound offer.
GSK in March said it was reviewing options for its 72.5% share of GlaxoSmithKline Consumer Healthcare Ltd., a public company listed on India’s exchanges. The sale would generate cash after GSK agreed to pay $13 billion for Novartis’ share in the two pharma giants’ consumer healthcare joint venture.
Despite its ongoing consumer sale process in India, GSK has stressed that it’s not backing away from the Indian market altogether. The drugmaker plans to back OTC and oral health brands in the country as well as invest in prescription drugs and vaccines, executives have said.
Meanwhile, in the U.S., GSK is cutting 650 jobs to reduce its cost base and reinvest the savings into new launches and R&D.
By: Eric Sagomowsky
Source: Fierce Pharma
Danone has appointed three deputy CEOs to “better connect categories and regions” and drive the delivery of its ‘Renew Danone’ strategy. The new appointees are Veronique Penchienati-Bosetta, Shane Grant and Juergen Esser. They will report to Danone CEO Antoine de Saint-Affrique.
PepsiCo Portugal has announced that it will invest €7.5 million to construct a new biodigester, which will turn organic waste into biogas. As well as helping its Carregado facility to achieve a 30% reduction in carbon emissions, the biodigester will also contribute to reducing gas consumption, allowing the installation to use the biogas produced during the anaerobic digestion process.
Kerry is sponsoring The Kerry Upcycled Food Foundation Fellowship in a new partnership with the Upcycled Food Foundation (UFF), the non-profit subsidiary of the Upcycled Food Association (UFA). The research fellowship is the second initiated by the UFF and will work toward advancing the understanding of the market, consumer perception and technical opportunities of upcycled food.