FMCG major Hindustan Unilever Ltd and healthcare firm GSK have mutually decided to terminate their agreement for selling Over-the-counter (OTC) and oral care products. The agreement was for brands such as Crocin, Eno, Iodex, Ostocalcium, Otrivin, and Sensodyne, which were owned by GSK. These brands were distributed by GlaxoSmithKline Consumer.
After HUL acquired GlaxoSmithKline Consumer in 2020, it entered into a distribution agreement with GSK to sell these OTC and oral care products. "The company, GSKAPL and GSKCPL have mutually agreed and expressed their intention to terminate the agreements with effect from 8th November 2023," said HUL.
As per the agreements, the one-year notice period for termination shall commence on November 9, 2022. This shall not have any material effect on the operations of the company it added.
In December 2018, GSK Consumer Healthcare announced its merger with HUL in an all-stock deal at a valuation of the Indian unit of GSK at Rs 31,700 crore.