Mumbai, Apr 1 (IANS): The merger of GlaxoSmithKline Consumer Healthcare with Hindustan Unilever (HUL) was completed on Wednesday, making HUL the new owner of the Horlicks brand.

In statement, GSK announced the completion of its divestment of Horlicks and other consumer healthcare nutrition products in India to HUL, including the merger of its Indian listed entity, GlaxoSmithKline Consumer Healthcare Ltd and Hindustan Unilever Ltd.

"Through the merger of GSK India with HUL, GSK now holds a 5.7 per cent stake in HUL, an Indian public company listed on the Indian National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). GSK intends to monetise its holding in HUL at such time it considers appropriate, taking into account market conditions," it said.

The transaction was announced in December 2018 and its completion follows the receipt of necessary legal and regulatory approvals.

HUL said that its board of directors on Wednesday approved the acquisition of Horlicks brand for India for Rs 3,045 crore.

Brian McNamara, Chief Executive Officer, GSK Consumer Healthcare, said: "The close of this transaction signals the beginning of an exciting new chapter for GSK in India, enabling us to focus and build on our portfolio of brilliant, science-based OTC and Oral Health brands and to make these products available to more consumers across the country."

The merger of GSK Consumer Healthcare with HUL has been on the basis of an exchange ratio of 4.39 HUL shares for each GSK Consumer Healthcare share. Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2 per cent to 61.9 per cent.