This was rumoured three months ago and it finally became a fact. GlaxoSmithKline has finally divested from its drinks bottling and distribution business.
In a statement made to The Exchange shortly, GSK is notifying The Exchange of the sales of the business unit to Suntory Beverage and Food Limited, SBF for the divestment of its drinks bottling business. The company did not state how much the deal was closed. Details should be made available in its Q2 2016 quarterly result should in case the deal is approved before the end of the quarter.
In the press release, GSK said it will be seeking approvals from its shareholders. The process will finally conclude the sale of the unit to SBF.
If the sale pulls through, GSK will only be left with its Wellness, Oral healthcare, Nutrition and Pharmaceutical/Vaccines business units. It will still be listed on The Exchange.
With this move, GSK would no longer be the owner of Lucozade Boost and Ribena. Other products have been discontinued. The company’s decision might not be unconnected in the bottled drinks business which has become a free-for-all space for giants like CoCa Cola, Pepsi and even alcoholic bottlers such as Nigeria Breweries and Guinness.
Suntory Beverage and Food Limited, SBF is a major soft drink company headquartered in Japan. The company’s revenue at 2015 full year was 1.2 trillion. It has 100 companies in its group with over 24,o00 employees worldwide.
Shares of GSK [GLAXOSMI:NL] fell from NGN 21 per share to 20 per share after the announcement of the deal.
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