Unilever expected to seek £50 billion mega-merger

Unilever had rejected a £50bn offer but said the deal was a "strong strategic fit." GSK's healthcare business owns Sensodyne toothpaste, Panadol vitamins, and Centrum brands. Unilever, the maker of Marmite, PG Tips, and Dove, wants a more significant stake in the health and hygiene sector.

"This acquisition will create the scale and growth platform for the combined portfolio in the United States, China, and India, with additional opportunities in other emerging markets," Unilever said, citing synergies in its oral care and vitamin businesses.

Unilever has not said whether to sweeten the rejected bid, but according to Bloomberg, the company has been talking with the bank to raise additional funds for the increased offer.

Unilever, owner of Marmite, bids for the GSK user division. GSK's share price was up nearly 5% Monday morning, which is a sign that some investors were hoping for higher bids. Unilever's shares fell almost 7%.

Unilever is already the third-largest company in London's FTSE 100 index and costs around £100 billion. The deal will result in one of the largest divisions of the FTSE 100's fifth-largest company.

GSK, which runs healthcare operations in a joint venture with US drugmaker Pfizer, has announced that it intends to discontinue operations.

However, management offered to split up as a separate public company. Instead, GSK wants to focus on drugs and vaccines. Some activist investors urge GSK CEO Emma Walmsley to explore the potential sale as a spinoff alternative.

"Interesting"

News of Unilever's interest was first announced by the Sunday Times over the weekend. This prompted the company to unveil a strategic update due for release later this month. Unilever said it had "concluded that Unilever's future strategic direction is to significantly expand its presence in the health, beauty and hygiene sector."