GlaxoSmithKline, Burroughs Wellcome boards approve merger
Our Corporate Bureau
18 March 2004
Mumbai: The merger of Burroughs Wellcome India Ltd (BWIL) into GlaxoSmithKline Pharmaceuticals Ltd (GSK) will finally be completed, with the boards of both the companies approving the scheme of amalgamation.
The boards have decided on a share swap ratio of 14 GSK shares for every 10 held by BWIL shareholders.
The merger in India comes nine years after GSK's global takeover of Burroughs in 1995. Proceedings in India had been delayed on account of labour-related problems at BWIL's Mulund plant, which now stand resolved.
Ernst and Young Private Ltd and Deloitte Haskins & Sells made presentations to the two boards to recommend a swap ratio for the merger. "The known liabilities have been taken into account, surplus assets have been valued and this was basically the last leg of simplification," Mr Kalyanasundaram said.