GlaxoSmithKline plc’s US$13bn acquisition of 36.5% stake in its consumer health joint venture with Novartis AG

Freshfields Bruckhaus Deringer has advised Novartis AG on the sale of its 36.5% stake in its consumer health joint venture with GlaxoSmithKline plc for US$13bn.

The sale will enable Novartis to further focus on the development and growth of its core businesses.

The joint venture was formed in 2015 as part of Novartis’ portfolio transformation, which comprised a three-part inter-conditional transaction with GSK, including the combination of the Novartis Over-the-Counter (OTC) business with the GSK consumer healthcare business into the existing JV.

The valuation, which was agreed by both parties, reflects the significant value created by the JV under the guidance of the joint JV Board and management team. Four of the 11 directors of the joint JV Board are appointed by Novartis. They will step down in connection with the completion of the transaction.

The Freshfields team was led by Julian Long (picture) and Jennifer Bethlehem with tax partner Paul Davison and antitrust partner Rod Carlton.

Herbert Smith Freehills advises arrangers on acquisition financing for GlaxoSmithKline with a team led by partner Will Nevin with the assistance of senior associate Elliot Beard and key associates Oliver Henderson and Ben Robinson.

Slaughter and May has advised GlaxoSmithKline on the deal with a Corporate team led by David Johnson (partner), Simon Nicholls (partner), Alex Dustan (associate), Edward Chapman (associate), Warwick Brennand (associate), Jack Wharton (associate); Financing: Guy O’Keefe (partner), Oliver Storey (partner), George Silber (associate), Louis de Ste Croix (associate), Oliver Ward (associate); Tax: Dominic Robertson (partner), Rose Swaffield (associate); Competition: Bertrand Louveaux (partner), Jordan Ellison (partner), Ying Wu (associate).

 

Involved fees earner: David Johnson – Slaughter and May; Simon Nicholls – Slaughter and May; Alex Dustan – Slaughter and May; Edward Chapman – Slaughter and May; Warwick Brennand – Slaughter and May; Jack Wharton – Slaughter and May; Guy O’Keefe – Slaughter and May; Oliver Storey – Slaughter and May; George Silber – Slaughter and May; Louis de Ste Croix – Slaughter and May; Oliver Ward – Slaughter and May; Dominic Robertson – Slaughter and May; Rose Swaffield – Slaughter and May; Bertrand Louveaux – Slaughter and May; Jordan Ellison – Slaughter and May; Ying Wu – Slaughter and May; Julian Long – Freshfields Bruckhaus Deringer LLP; Jennifer Bethlehem – Freshfields Bruckhaus Deringer LLP; Paul Davison – Freshfields Bruckhaus Deringer LLP; Rod Carlton – Freshfields Bruckhaus Deringer LLP;

Law Firms: Slaughter and May; Freshfields Bruckhaus Deringer LLP;

Clients: GlaxoSmithKline plc; Novartis;

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