=GlaxoSmithKline (GSK) and Pfizer (PFE) to combine their consumer health businesses into a new joint venture

GlaxoSmithKline reached agreement with Pfizer (PFE) to combine their consumer health businesses into a new joint venture 

• Co reached agreement with Pfizer Inc to combine their consumer health businesses into a new world-leading Joint Venture, with combined sales of approximately 9.8 billion ($12.7 billion). 
• GSK will have a majority controlling equity interest of 68% and Pfizer will have an equity interest of 32% in the Joint Venture.
• The proposed transaction is expected to realize substantial cost synergies, with the Joint Venture expected to generate total annual cost savings of 0.5 billion by 2022 for expected total cash costs of 0.9 billion and non-cash charges of 0.3 billion. Planned divestments targeting around 1 billion of net proceeds are expected to cover the cash costs of the integration. Up to 25% of the cost savings are intended to be reinvested in the business to support innovation and other growth opportunities. Overall the Joint Venture will target an Adjusted operating margin percentage in the 'mid-to-high 20's' by 2022.
• The proposed transaction is transformational to the scale of GSK's Consumer Healthcare business. Within 3 years of the closing of the transaction, GSK intends to separate the Joint Venture via a demerger of its equity interest and a listing of GSK Consumer Healthcare on the UK equity market. Over this period, GSK will substantially complete the integration and expects to make continued progress in strengthening its Pharmaceuticals business and R&D pipeline.
•  The proposed transaction is subject to approval by GSK shareholders and conditional upon the receipt of certain anti-trust authority approvals. Subject to these approvals, the transaction is expected to close in the second half of 2019.