GSK buys Novartis's stake in consumer healthcare venture
British drugs giant GlaxoSmithKline (GSK) has agreed a $13bn (€10.4bn) deal to buy Novartis's 36.5pc stake in its consumer healthcare joint venture.
GSK is considering putting its Horlicks brand up for sale as part of a review of consumer nutrition products launched to help fund the deal with Novartis.
It will also review options for its 72.5pc stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare.
On the Novartis deal, Emma Walmsley, chief executive of GSK, said: "The proposed transaction addresses one of our key capital allocation priorities and will allow GSK shareholders to capture the full value of one of the world's leading consumer healthcare businesses.
"For the group, the transaction is expected to benefit adjusted earnings and cash flows, helping us accelerate efforts to improve performance.
"Most importantly it also removes uncertainty and allows us to plan use of our capital for other priorities, especially pharmaceuticals R&D."