Coca-Cola enters race to buy GSK's Horlicks: Report

GSK Pharma | Company reported lower profit at Rs 76.5 crore in Q2FY21 compared to Rs 502.7 crore, revenue fell to Rs 879 crore from Rs 882 crore YoY.

Coca-Cola is looking to buy GlaxoSmithKline's consumer nutrition business, which includes popular brand Horlicks, The Economic Times reports.

"The evaluation work had begun even though the sale process is yet to formally launch. It will be a large transaction, so work has already begun," a source told the paper.

Coca-Cola has asked Citigroup to assist them in the bidding process, expected to begin next week.

Nestle, Danone, Unilever are reportedly other contenders for GlaxoSmithKline's consumer nutrition business. Indian companies ITC and Dabur have also expressed interest, the report added.

Moneycontrol could not independently verify the news.

Also read - Possible sale of Complan, Horlicks casts spell on Rs 7,000 crore malt-based health drinks market

But Horlicks might not be a suitable fit for Coca-Cola, since the company is  looking to rapidly reduce sugar across its portfolio, a top official told The Economic Times. 

GlaxoSmithKline Consumer Healthcare Ltd sells Horlicks and Boost in India.

GlaxoSmithKline placed Horlicks and some of its smaller products under strategic review in March this year to fund its USD 13 billion acquisition of Novartis.

The value of GlaxoSmithKline's Horlicks health nutrition business is roughly USD 4 billion, according to a Reuters estimate.