GlaxoSmithKline (GSK) the British pharmaceutical giant has closed the deal with its consumer healthcare business Pfizer.
The joint venture will see GSK holding 68% of equity and Pfizer will own the remaining 32%, which will generate a cost saving £500m by 2022.
The business will see combined sales of £9.8bn and the pharma giant will have two separate UK based companies with one focusing on vaccines and pharmaceuticals and the other to focus on consumer healthcare.
Brian McNamara, chief executive, GSK Consumer Healthcare said, “Now the deal has closed, our focus will be on completing the integration of these two businesses and leveraging their combined strength.
“With our portfolio of brilliant, science-based brands and strong talent and capabilities, we are well-positioned to create a world-leading consumer healthcare business with stronger sales, cash flow and contribution to earnings.”
Emma Walmsley, chief executive of GSK and chairwoman of the joint venture said, “The completion of the joint venture with Pfizer marks the beginning of the next phase of our transformation of GSK.
“This is an important moment for the group, laying the foundation for two great companies, one in pharmaceuticals and vaccines and one in consumer health.”