Financial Daily from THE HINDU group of publications
Thursday, Mar 11, 2004

Cross Currency

Group Sites

Corporate - Mergers & Acquisitions

Glaxo, Burroughs Wellcome boards to meet on merger

Our Bureau

Mr Deepak Parekh (right), Chairman, GlaxoSmithKline Pharmaceuticals Ltd, with Mr Ajay Nadkarni, Company Secretary, addressing the company's AGM in Mumbai on Wednesday. — Paul Noronha

Mumbai , March 10

THE long-pending merger of GlaxoSmithKline Pharmaceuticals Ltd (GSKPL) and Burroughs Wellcome (India) Ltd (BWIL) looks finally set to formalise in India, almost nine years after the two British companies merged globally in 1995.

With niggling issues regarding BWIL's Mulund plant being resolved, the boards of the two companies are scheduled to meet on March 17 to discuss issues related to the merger, the GSK Chairman, Mr D.S. Parekh, told shareholders here on Wednesday.

Two external firms - Ernst & Young and Deloitte - have been appointed to do the evaluation and they would make a presentation to the boards on the swap ratio, he said responding to shareholder queries at the company's 79th annual general meeting (AGM).

"The global merger had taken place in 1995 and the process of integration had been done immediately at all other locations except India. We hope the process of merger would be completed in India by September and it would be effective January 1, 2004."

Sidestepping questions on a bonus issue before the merger was effected, he said: "We will look at a bonus at the right time. Our first priority is to get the merger through. We have been acting as a single company as far as sales-force and marketing is concerned. What is left is to integrate the balance sheets."

The merger in India ran into rough weather with employees at BWIL's Mulund plant opposing unified wages.

However, that later got resolved with the company offering a voluntary separation scheme and the Mulund plant was subsequently closed.

Speaking to newspersons after the AGM, Mr Kalyanasundaram, GSK's Managing Director in India, said that the operational integration had been undertaken progressively following the global merger and the process was completed by 1997-98.

All rationalisation processes of workforce and products had also been completed.

What is left is purely procedural, he said.

The UK-based parent company, GlaxoSmithKline Plc holds 49 per cent equity in GSKPL and 51 per cent in Burroughs Wellcome.

`No deal yet on Worli plant sale'

IN a bid to put a lid on market talk regarding the sale of GSK's Worli plant, GSKPL's Chairman, Mr D.S. Parekh, said: "The deal is not yet concluded."

He told shareholders that of the four preferred bidders who were short-listed, exclusive talks were on with one of them. Property deals are generally "time-consuming" and lawyers on both sides are working out details of the estimated Rs 100-crore deal, he added.

More Stories on : Mergers & Acquisitions | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fire accident at Suryalata unit in AP

LG to exit manufacturing in J&K, Assam
Hind Copper to alter wire bar price declaration system
Galileo India offers e-tickets across 12 international airlines
BSP facing coal shortage; may halt production soon
Training solutions consultancy
Cummins signs agreement with Westport for tech
NCCL bags mega orders
Wyeth seeks nod to put Forhan's on the block
Pref allotment completed — 2 Michelin nominees inducted onto Apollo Tyres' Board
Avon Organics allots warrants at Rs 43
3 companies win CII awards
Rainwater harvesting projects from Coke
FCI OEN Connectors net up 15 pc at Rs 11.7 cr
IOC wants stake in ONGC Videsh
Glaxo, Burroughs Wellcome boards to meet on merger
Lakshmi Electrical buys textile spinning unit
Aarti Drugs scouting for partners in China
NTPC-BHEL may drop out of Oman project
FreeMarkets deployed to rein in Dabur costs
Volvo draws up global export hub plans for India
Honda hopes to wipe out losses this fiscal
ONGC has new ED
Former HSBC chief joins Wockhardt
Hyderabad Ind gets new MD

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line