GSK has announced the finalisation of its demerger from the Consumer Healthcare business group to form its new consumer health group, Haleon. The spin-out began trading at the London Stock Exchange with a market valuation of around £31bn ($37bn).
The new company has annual sales of an estimated £10bn from over-the-counter products like Sensodyne toothpaste, Voltaren, Panadol and Centrum multivitamins, consolidating its position as the second-biggest global consumer health company.
GSK shareholders hold around 54.5% of Haleon, while the spin-out continues to hold a 13.5% share.
Pfizer, GSK’s partner in Haleon, holds the remaining 32% of shares in the new company and confirmed that it plans to sell its share now that the demerger has been finalised.
In January 2022, GSK rejected a $68bn bid from Unilever for the consumer health operations, stating that Unilever’s offer ‘fundamentally undervalued the Consumer Healthcare business and its future prospects’.
The demerger of Haleon from GSK follows years of planning and a vote in favour of the move by GSK shareholders.
Previously, GSK stated its plans to sell its share in Haleon in a ‘disciplined manner’ to raise money that will be invested into its R&D pipeline.
GSK has stated that it would begin a share consolidation in an effort to curb the impact of the spin-off on its stock.
Haleon is led by chief executive officer Brian McNamara who managed the joint venture when it was still part of GSK.