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GSK to buy Novartis' stake in Consumer Healthcare

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GlaxoSmithKline is buying out Novartis’ 36.5% stake in their Consumer Healthcare Joint Venture for $13 billion, the company announced in a press release.

GSK’s consumer health care business reported sales growth of 4% since 2015. This transaction will allow the company’s shareholders to capture the full value of that growth, the release said.

“For the Group, the transaction is expected to benefit adjusted earnings and cash flows, helping us accelerate efforts to improve performance,” GSK CEO Emma Walmsley said in the release. “Most importantly it also removes uncertainty and allows us to plan use of our capital for other priorities, especially pharmaceuticals R&D.”

GSK shareholders will need to approve the transaction, and the GSK board intends to unanimously recommend voting in favor, according to the release. The transaction is expected to be accretive to adjusted earnings in 2018.