Acquisition | Unilever acquires brand Horlicks from GSK

Running head: ACQUISITIONS
Unilever acquires brand Horlicks from GSK
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1ACQUISITIONS
The organization and its quality initiative:
An organization which has adopted a new quality initiative is Unilever under the leadership
of its listed Indian subsidiary Hindustan Unilever Limited or HUL. The global FMCG giant
entered into an agreement GlaxoSmithKline, the previous owner of the brand Horlicks to acquire
the brand in the Asian markets in 2018 (Unilever.com, 2020). The reference of Unilever is
applicable in this respect since the company keeps on adopting strategies like acquisitions and
merger to improve the quality of its product umbrella. The improvement here refers both to the
enhancement of the quality of the products the company offers to its global consumer base and to
the different types of products which the company offers to create value to the customers.
Steps taken to implement the process of acquisition of Horlicks:
The acquisition has been completed in 2020. It consists of three main steps: They were as
follows:
1. HUL and GSK CH India underwent an all equity merger.
2. HUL acquired 82% shares of GSK Bangladesh.
3. Acquisitions of several assets of GSK in other Asian markets.
Expected impacts on the company:
The acquisition of Horlicks is expected to have positive impacts on Unilever. Unilever,
through the acquisition or Horlicks increased its presence in the health food markets in Asia.
Horlicks is one the most consumed health drink globally. Thus, the company through this
acquisition would be able acquire an immense base of consumers consuming Horlicks which
would boost its revenue. Moreover, the acquisition of the GSK shares has also strengthened the