Meanwhile, the S&P BSE Sensex was down 31.94 points, or 0.09% to 36,162.36.

Hindustan Unilever was up 0.76% at Rs 1767.

GlaxoSmithKline Consumer Healthcare was up 1.31% at Rs 7365.

The board of directors of Hindustan Unilever (HUL) today, 3 December 2018, approved a scheme of amalgamation between the company and GlaxoSmithKline Consumer Healthcare (GSK CH India) subject to obtaining requisite approvals from statutory authorities and shareholders. HUL has reached a definite agreement with GSK CH India in this regard. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. This transaction values the total business at Rs 31,700 crore.

Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2% to 61.9%. The merger includes the totality of operations within GSK CH India, including a consignment selling contract to distribute GSK CH India's over-the-counter and oral health products in India. The transaction is expected to be completed in one year subject to regulatory and shareholder approvals.

The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable foods and refreshment (F&R) business in India by leveraging the mega trend of health and wellness. GSK CH India is the market leader in the health food drinks (HFD) category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. This portfolio has a long history in India with Horlicks having originally been introduced in the 1930s. Horlicks products have been an everyday staple in households across generations.

Sanjiv Mehta, chairman and managing director, HUL said, With this proposed strategic merger with GSK CH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers. I am confident that this merger will create significant shareholder value through both revenue growth and cost synergies. The turnover of our F&R business will exceed Rs.100 bn and we will become one of the largest F&R businesses in the country. We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete.

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Hindustan Unilever Ltd is up for a third straight session today. The stock is quoting at Rs 1578.75, up 1.07% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is down around 1.3% on the day, quoting at 10317.65. The Sensex is at 34405.27, down 1.08%. Hindustan Unilever Ltd has slipped around 2.62% in last one month.

Meanwhile, Nifty FMCG index of which Hindustan Unilever Ltd is a constituent, has slipped around 5.51% in last one month and is currently quoting at 28623.35, up 0.38% on the day. The volume in the stock stood at 5.49 lakh shares today, compared to the daily average of 18 lakh shares in last one month.

The benchmark October futures contract for the stock is quoting at Rs 1570.2, up 1.17% on the day. Hindustan Unilever Ltd is up 26.31% in last one year as compared to a 1.3% jump in NIFTY and a 13.03% jump in the Nifty FMCG index.

The PE of the stock is 57.73 based on TTM earnings ending September 18.

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Hindustan Unilever announced that the Board of Directors of the Company at its meeting held on 12 October 2018, inter alia, have recommended the interim dividend of Rs 9 per equity Share (i.e. 900%) , subject to the approval of the shareholders.

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Net profit of Hindustan Unilever rose 19.51% to Rs 1525.00 crore in the quarter ended September 2018 as against Rs 1276.00 crore during the previous quarter ended September 2017. Sales rose 11.45% to Rs 9138.00 crore in the quarter ended September 2018 as against Rs 8199.00 crore during the previous quarter ended September 2017.

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