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GSK Exercises Right To Buy Out Novartis Consumer Healthcare JV For $13bn

 
• By Mike Ward

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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• Source: Shutterstock

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.

Last week, GSK announced that it had pulled out of the bidding to acquire the Pfizer Inc

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