GlaxoSmithKline PLC has announced that it will buy out the 36.5% stake Novartis AG holds in the GSK-Novartis Consumer JV, which was created in 2014 as part of a three-part transaction between the two companies, for $13bn (£9.2bn). Under the original deal, Novartis had a put option, exercisable from 2 March 2018 to 2 March 2035, to require GSK to purchase its stake (or specified tranches of it) in the joint venture.
GSK Exercises Right To Buy Out Novartis Consumer Healthcare JV For $13bn
GSK will buy Novartis’ 36.5% stake in the Consumer Healthcare Joint Venture, established in 2014, for $13bn (£9.2bn). It expects power brands to deliver operating margins approaching mid-20s by 2022. GSK will also initiate a strategic review of Horlicks and other consumer nutrition products to support transaction funding.
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