Hindustan Unilever & GlaxoSmithKline merger gets green signal

National Company Law Tribunal (NCLT) Chandigarh Bench approved the merger of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) into Hindustan Unilever Limited (HUL) which previously NCLT of Mumbai Bench had approved as per its order dated September 24, 2019.

HUL also reported that the effective date of the scheme will be communicated upon being finalised by both the companies in accordance with the procedure specified under the scheme approved by Mumbai NCLT and Chandigarh NCLT. As per the approved scheme of amalgamation between the two companies, this merger would be on the basis of an exchange ratio of 4.39 HUL shares for each GlaxoSmithKline share. The merger would result in the valuation of the total business of GSKCH at Rs 31,700 crore.

HUL is engaged in fast-moving consumer goods business comprising home and personal care, foods and refreshments. The company's popular segments include soaps and detergents, personal products, beverages, packaged foods, frozen desserts, infant care products, export sale of marine and leather products, etc.

GSKCH is a food processing company offering malt-based food, protein-rich food, cereal-based beverage and nutritional food powder. Its product include nutritional products and Over The Counter (OTC) products such as Junior Horlicks, Mother's Horlicks, Horlicks Biscuit, Boost, Maltova, Crocin, Eno, Iodex and so on.

On Thursday, the stock of HUL closed at Rs 2,247.90, up by 0.31 per cent or Rs 6.95 per share. Its 52-week high is Rs 2,307.20 and 52-week low is Rs 1,649.70 on BSE. The stock of GSKCH closed at Rs 9,800, up by 1.68 per cent or Rs 161.80 per share. Its 52-week high is Rs 9,917.55 and 52-week low is Rs 6,868 on BSE.