Glaxo in bid for Pfizer's Listerine business
GlaxoSmithKline was today at the centre of speculation linking it to an €11.6bn bid for Pfizer’s Listerine-to-Sudafed consumer healthcare arm.
Such a move would transform Glaxo into the world’s biggest maker of non-prescription drugs, as well as the second largest prescription drugs supplier.
But the UK company faces stiff competition as Reckitt Benckiser – successful in the recent €1.5bn auction of the Strepsils-to-Nurofen arm of Boots – and Johnson & Johnson are also likely to be interested.
Glaxo may also have to sell some products if it is successful, as it is likely to face regulatory concerns over smoking cessation products. The company’s consumer division generates sales of around €4.4bn and includes Lucozade, Panadol painkillers and Aquafresh toothpaste in its portfolio.
Pfizer announced this year that it was conducting a strategic review that could lead to a sale of its consumer healthcare operations.
According to the Financial Times, Glaxo is prepared to offer more than analysts’ estimates of $14bn (€10.9bn), but will not pay more than $16bn (€12.5bn) because it would be difficult to achieve the necessary synergies to justify the deal.
It is thought that Pfizer could make a decision on the future of the operation in the third quarter of the year.
