Bidding war brewing for GSK’s Indian Horlicks division, with Coca-Cola, Nestle and Kraft all reportedly interested

There is a bidding war brewing for GlaxoSmithKline plc’s (LON:GSK) Horlicks drinks business in India, with Coca-Cola, Nestle and Kraft Heinz all reportedly interest.

Earlier this year, Glaxo said it was mulling the sale of the business in India, where the drink is particularly popular as many children drink it for breakfast.

Given its foothold in one of the world’s largest and most rapidly developing countries, experts reckon the unit, alongside some smaller nutrition products also set to be hived off, could fetch £3bn, according to the Sunday Telegraph.

Chief executive Emma Walmsley, who took charge just over a year ago, has prioritised GSK’s underperforming pharmaceutical business, which accounts for more than half of its turnover.

She recently agreed to buy the remaining US$13bn (£9.8bn) stake in GSK’s consumer healthcare joint venture with Novartis, which means it now has 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.

The Sunday Telegraph said no final decision on the sale has been yet because a strategic review is under way and is unlikely to be finished before the end of the year. Glaxo declined to comment.

Glaxo shares are down 0.9% to 1,542p.

Story by ProactiveInvestors