Pharmaceuticals giants GlaxoSmithKline and Pfizer have announced that they are combining their consumer healthcare businesses in a joint venture.
GSK will have 68% of the merged business, which includes its painkiller Panadol, as well as Pfizer’s Advil.
The move comes nearly nine months after GSK bought out Swiss firm Novartis’s stake in a similar joint venture.
GSK said the new deal was a “compelling opportunity” to build on its earlier buyout and deliver stronger sales.
The merger will have combined sales of £9.8bn ($12.7bn) and is expected to take effect in the second half of 2019, subject to regulatory approval.
“Through the combination of GSK and Pfizer’s consumer healthcare businesses, we will create substantial further value for shareholders,” said GSK chief executive Emma Walmsley.
“Ultimately, our goal is to create two exceptional, UK-based global companies, with appropriate capital structures, that are each well positioned to deliver improving returns to shareholders and significant benefits to patients and consumers.”
The joint venture will go by the name of GSK Consumer Healthcare. Apart from GSK’s Nigerian subsidiary, which is excluded from the deal, it will operate in all countries where GSK and Pfizer have a presence.
GSK will have six directors on the board, while Pfizer will have three.