FMCG giant Unilever has announced it will not attempt a new bid for GlaxoSmithKline‘s consumer division, after its previous bid worth sixty billion euros was refused.
IPO next summer?
Unilever has made three unsuccessful bids on GSK’s consumer division, which owns brands like Sensodyne, Aquafresh and Panadol. The pharmaceutical giant thought none of the bids reflected the true value of its consumer division and its potential for the future.
GSK also affirmed it will stick to the plan to float its consumer division on the stock exchange this summer, citing its expectations the division will have an annual growth of 4 to 6 %. Last year, GSK’s consumer division managed 11.5 billion euros in sales, Reuters reports.
Unilever has already responded, saying that its point of view regarding the division’s fundamental value has remained unchanged, and that it will therefore not raise its bid any more.