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Share Price Information for Glaxosmithkline (GSK)

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Share Price: 1,733.50
Bid: 1,732.50
Ask: 1,733.00
Change: 5.00 (0.29%)
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Open: 1,733.00
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UPDATE 1-GSK buys Novartis stake in consumer healthcare venture for $13 bln

Tue, 27th Mar 2018 06:29

ZURICH, March 27 (Reuters) - GlaxoSmithKline willbuy Novartis's 36.5 percent stake in their consumerhealthcare joint venture for $13.0 billion in cash, the partnerssaid on Tuesday.

The deal is set to complete in the second quarter subjectto the necessary approvals.

GSK said the transaction with Novartis was expected to addto adjusted earnings from 2018 and to strengthen cash flowgeneration.

It said it would also start a strategic review of Horlicksand other consumer nutrition products. The review will includean assessment of its shareholding in Indian subsidiaryGlaxoSmithKline Consumer Healthcare Ltd.

The joint venture was formed in 2015 as part of a sweepingrevamp that included combining the Novartis over-the-counterbusiness with the GSK consumer healthcare business.

Products include Panadol headache tablets, muscle gelVoltaren, and Nicotinell patches used by smokers who want toquit their habit.

"While our consumer healthcare joint venture with GSK isprogressing well, the time is right for Novartis todivest a non-core asset at an attractive price," Novartis CEOVas Narasimhan said.

GlaxoSmithKline last week quit the race to buy Pfizer'sconsumer healthcare business, endangering an auction theU.S. drugmaker hoped would bring in as much as $20 billion.(Reporting by Michael Shields, editing by John Revill)

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