New Delhi: GlaxoSmithKline Consumer Healthcare India (GSKCH) on Friday received a go-ahead for its merger with Hindustan Unilever (HUL) from the Competition Commission of India (CCI), the company informed the stock exchange in a filing.
"In this regard, we would like to inform you that the Competition Commission of India has, vide its letter dated January 23, 2019, (received on January 25, 2019), accorded its approval for the amalgamation of the company with HUL," GSKCH India said in a statement. A copy of the order of the CCI is awaited, it added.
In December last year, HUL agreed to acquire GSK Consumer Healthcare in an all-stock deal valued at $3.8 billion. The acquisition will give the country’s largest consumer goods firm access to brands such as Horlicks, Boost, and Maltova. The transaction valued GSK Consumer Healthcare at ₹31,700 crore then.
The merger is expected to be completed in the next six to nine months pending clearances from different regulatory bodies, the company's chief financial officer, Srinivas Phatak said at the company's recent earnings announcement on January 17.
However, the deal is still awaiting further regulatory approvals.
“The scheme remains subject to the receipt of other necessary statutory and regulatory approvals under applicable laws, including by the National Stock Exchange of India Limited, BSE Limited, Securities and Exchange Board of India, the National Company Law Tribunal, and the respective shareholders and creditors of HUL and the company," GSK added in its statement to the exchange on Friday.