LONDON (Alliance News) - GlaxoSmithKline PLC is said to have sold its drinks brands Lucozade and Ribena to Japanese drinks giant Suntory in a deal worth GBP1.3 billion, The Telegraph reports Monday.
Glaxo announced plans for a business revamp earlier this year, and it is said to be selling the two iconic brands as part of business shift, to separate its older products from its bigger health business, which focuses on the development of new medicines.
The Telegraph said that the deal has come after months of speculation, and is expected to boost Suntory's UK presence, as its attempts to compete with rivals like Coca-Cola and Britvic.
The Japanese drink company, well known for brands such as Orangina, had previously said that it had set aside around GBP3.2 billion for investments and takeovers since its initial public offering in July, according to The Telegraph.
An official announcement is expected to be made this morning, according to Bloomberg.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/10295267/Japans-Suntory-snaps-up-Ribena-and-Lucozade-from-GSK-in-1.3bn-deal.html
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Glaxosmithkline (GSK)