INSUBCONTINENT EXCLUSIVE:
emerged as the leading bidder in a tight contest for GlaxoSmithKline PLC's domestic Horlicks nutrition business, two people familiar with
the situation told Reuters on Wednesday
If it is able to clinch the deal, Unilever will trump fellow European consumer giant Nestle SA, which according to a media report earlier on
Wednesday was close to buying Horlicks and other GSK consumer healthcare assets in India
Unilever and GSK, which owns 72.5 per cent of domestic business GlaxoSmithKline Consumer Healthcare Ltd, were in exclusive talks, the
Financial Times reported on Tuesday, citing people familiar with the sales process.The acquisition will strengthen Unilever's position in
India, an emerging market whose growing population and rising wealth make it attractive in the long term for companies trying to offset weak
growth in Western markets.GSK's assets, which include the popular malt-based drinks Horlicks and Boost, is likely to fetch less than $4
billion, said people close the deal, who declined to be identified as the information is confidential.Earlier in the sale process, separate
sources had told Reuters the assets could be valued at more than $4 billion.Some analysts considered the $4 billion valuation high
considering the domestic market for so-called health drinks - mostly dietary supplements or flavour enhancers typically drunk with milk - is
seeing a slowdown in growth.Urban consumers are increasingly turning to healthier, less-sugary alternatives and natural products, analysts
and industry sources said.Last month, Kraft Heinz Co agreed to sell its popular health-drink brands Complan and Glucon-D, along with some
other brands and factories, to pharmaceuticals and consumer company Zydus Wellness Ltd for Rs 4,595 crore ($648.6 million).Still, Horlicks
comfortably dominates the health-drinks market and a big consumer company with deep pockets is likely to give it a fresh lease of life,
analysts and industry sources said.GSK is conducting a strategic review of its nutrition brands in the country and expects to conclude the
process by the end of 2018, a spokeswoman for GSK India told Reuters.A spokeswoman for Hindustan Unilever Ltd, Unilever's domestic
subsidiary, declined to comment when contacted by Reuters
A spokesman for Nestle India said the company would not comment on "speculation".Other bidders include Coca-Cola Co, which has been looking
to expand in emerging markets, sources previously told Reuters.
