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In a potentially 50 billion-pound agreement, Unilever examines GSK's consumer goods division

In a potentially 50 billion-pound agreement, Unilever examines GSK's consumer goods division

Unilever, a consumer goods company, claimed that it had approached Glaxosmithkline about buying the company's consumer goods division, according to reports.

In a statement on Saturday, Unilever, which has been criticized by some investors for its low share price, confirmed the company's approach to a potential acquisition.

"GSK Consumer Healthcare is a leader in the attractive consumer health industry and would be a strong strategic fit," it said.

"There can be no certainty that any agreement will be reached," says a lawyer.

GSK has refused to make any comments on the approach.

The Unilever business bid for the business ended in the last year was worth roughly 50 billion pounds, according to the Sunday Times. GSK and Pfizer, which owns a minority share in the division, have rejected the offer as too low.

The approach of Unilever, which owns Dove soap and Marmite, for Glaxo's extensive of household brands including Panadol painkillers and Sensodyne toothpaste was thought to be unolicited, according to the company.

The newspaper said it didn't know whether Unilever would make a higher offer.

Unilever has been under pressure from investors after underperforming competitors such as Procter & Gamble.

Alan Jope, the head of the organization's senior finance manager, recently had a break with Terry Smith, who criticised the organization for promoting sustainability credentials at the expense of performance.

Jefferies, a brokerage firm, had put a valuation for the entire consumer business at 45 billion pounds last year.

Analysts at Deutsche Bank said in June 2021 that any takeover bid for GSK's consumer assets worth more than 45 billion pounds would be "eye-watering."

Unilever has previously dismissed concerns that it was in the market for big deals. Jope has stated that he was only interested in small, bolt-on acquisitions in fast-growing areas such as luxury beauty and health and wellness.

($1 = 0.7314 pounds)

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