Unilever plc (LON:ULVR) is in exclusive talks to acquire blue-chip peer GlaxoSmithKline PLC’s (LON:GSK) Indian Horlicks nutrition business, according to the Financial Times.
However, Indian newspaper Times of India reported that Swiss consumer products rival Nestlé SA is close to buying Horlicks and other Glaxo consumer healthcare assets.
READ: Bidding war brewing for GSK’s Indian Horlicks division, with Coca-Cola, Nestle and Kraft all reportedly interested
The auction for the assets, which include popular malt-based health drinks brands Horlicks and Boost, could fetch more than US$4bn, according to media sources.
FTSE 100-listed Glaxo owns a 72.5% stake in the business being sold, GlaxoSmithKline Consumer Healthcare Ltd.
US soft drinks giant Coca-Cola Corp (NYSE:KO) was another likely Horlicks suitor, having been shortlisted to join the final round of the auction, which began in September, but its interest cooled, the Financial Times reported, citing one person familiar with the sales process.
In July, Glaxo confirmed reports that it plans to sell its Horlicks malt drink brand in the UK, resulting in more than 300 job cuts.
The firm said it would offload the business in the UK and close the site in Slough, England where the malted drink is made as part of plans to focus on its core drugs division.
At the end of March, the drugs giant agreed to buy up the remaining US$13bn (£9.8bn) stake in its consumer healthcare joint venture with Novartis, taking full control of a portfolio of products such as Panadol headache tablets and Sensodyne toothpaste.
The sale of the Indian Horlicks business would help to offset the cost of that deal.