Ending a monthslong auction process, drug giant GlaxoSmithKline has begun exclusive negotiations to sell its nutrition business to consumer goods company Unilever, according to The Financial Times.
Here are five things to know:
1. GlaxoSmithKline's nutrition business includes Horlicks, a malted milk drink that is one of India's best-known brands. Analysts estimate the brand carries a value of $3 billion.
2. If finalized, the deal would end a bidding process that also had interest from players like Coca-Cola Co. and Nestle.
3. Unilever's takeover bid would be the latest move to strengthen its position in India, one of the world's most promising consumer markets.
4. Unilever sells Ben & Jerry's ice cream, Dove soap and Lipton tea.
5. For GlaxoSmithKline, the sale of its nutrition business will help finance its $13 billion deal to buy out Novartis in their consumer-health joint venture. It also solidifies GSK CEO Emma Walmsley's mission to refocus the company on innovation.