NCLT approves scheme of amalgamation for HUL-GlaxoSmithKline Cons merger

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Published: November 7, 2019 1:45:45 AM

“We wish to inform you that the Hon'ble National Company Law Tribunal, Mumbai Bench, vide its order dated 24 September, 2019, has sanctioned the aforesaid scheme. This order is subject to sanction of the scheme by the Hon’ble National Company Law Tribunal, Chandigarh Bench,” the firm stated on Wednesday.

NCLT, HUL, GlaxoSmithKline Consumer Healthcare, FMCG, HUL shares, Horlicks, BoostHUL is one of the biggest players across Indian FMCG value chain.

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the scheme of amalgamation for the merger of Hindustan Unilever (HUL) and GlaxoSmithKline Consumer Healthcare. HUL’s board had in December 2018 approved the merger of GlaxoSmithKline Consumer Healthcare with the company.

“We wish to inform you that the Hon’ble National Company Law Tribunal, Mumbai Bench, vide its order dated 24 September, 2019, has sanctioned the aforesaid scheme. This order is subject to sanction of the scheme by the Hon’ble National Company Law Tribunal, Chandigarh Bench,” the firm stated on Wednesday.

According to the announced plan, the merger of GlaxoSmithKline Consumer Healthcare with HUL would be on a basis of an exchange ratio of 4.39 HUL shares for each GlaxoSmithKline share. This would peg the valuation of GlaxoSmithKline’s consumer healthcare business at Rs 31,700 crore. Following the issue of new HUL shares, Unilever’s holding in HUL will be diluted from 67.2% to 61.9%, the firm had stated.

“Since all the requisite statutory compliances have been fulfilled the company scheme petition… filed by the petitioner company (HUL) is made absolute,” the order stated. GlaxoSmithKline Consumer Healthcare owns key brands in the fast-moving-consumer-goods (FMCG) space, including the health drinks Horlicks and Boost.

HUL is one of the biggest players across Indian FMCG value chain. The merger includes all the operations within GlaxoSmithKline India’s consumer healthcare vertical, including a consignment selling contract to distribute the company’s over-the-counter and oral health products in India.

With the merger, HUL aims to drive cost synergy as a result of a more streamlined supply chain operation, distribution network and infrastructure. HUL’s shares ended 0.36% up at Rs 2,179.90 on the BSE.

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