1. HBW Insight
  2. >>Beauty
  3. >>Business

Five Reasons Why GSK Spinning Off Consumer Health Wouldn't Be Easy

 
• By Eleanor Malone

GSK once again provided grist to the stock market rumor mill recently with reports of its chairman talking to major shareholders about the possibility of splitting up the company. But there are reasons to doubt whether talks would lead to action any time soon.

Emma Walmsley GSK
GSK's CEO, Emma Walmsley • Source: GlaxoSmithKline

It's not the first time that investor disgruntlement has bubbled to the surface at GlaxoSmithKline PLC. If UK media reports are to be believed, major shareholders have been pushing the UK big pharma's chairman Philip Hampton to consider breaking up the company, something that had become a common refrain under the leadership of previous CEO Andrew Witty, culminating not only in Witty's departure in 2017 but also the withdrawal of high-profile fund manager Neil Woodford as a shareholder.

The argument for a break-up rests on GSK's lower-margin consumer business having a very different financial model from its pharmaceutical...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on HBW Insight for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Business

Beauty Market Uncertainty Stalls Large M&A, But Middle-Market Deals Continue – Capstone

 
• By Eileen Francis

Middle-market beauty deals, which are defined as those with targets of $10m to $100m worth of enterprise value, are driving transaction momentum year-to-date that is in-line with levels during the same period last year, according to Capstone Partners’ Consumer Investment Banking Group.

Perrigo Implements Streamlining Plan With Sale Of Dermacosmetics

 
• By Tom Gallen

Perrigo stands to gain up to €327m with sale of brands such as ACO and Emolium to KKR.

L’Oréal Plans Purchase Of Color Wow Brand

 
• By Eileen Francis

L’Oréal has signed an agreement to acquire the Color Wow professional styling brand for an undisclosed price.

Scent News: Givaudan Buys Brazilian Fragrance House, DSM-Firmenich Taps Fine Fragrance President

 
• By Eileen Francis

Swiss fragrance company Givaudan SA will acquire Brazilian fragrance house Vollmens Fragrances, as DSM-Firmenich names Jonathan Simon president of fine fragrance.

More from Beauty

HHS Wants Employees (And Public?) To Report Diversity, Equity And Inclusion Discrimination

 
• By Sue Sutter

A survey asks FDA staff to disclose whether DEI policies caused discrimination or resulted in disciplinary action against career employees over the past five years, but uses a web form that the general public also can access.

FDA Urged To Issue Formaldehyde Rule As California Finds Non-Compliance With State Ban

 
• By Lauren Nardella

Stakeholders are still waiting for the US FDA to issue its widely anticipated proposed rule to prohibit formaldehyde and formaldehyde releasers from hair smoothing or straightening products.

Cloudy Tariff Conditions Expected To Linger In US

 
• By Malcolm Spicer

White House announces president extends deadline he set in April for other countries to make new tariff deals from July 9 to Aug. 1, when the administration will start sending letters warning other countries that higher tariffs could take effect.