Glaxo pulls bid for Pfizer's $20B consumer healthcare business: 4 notes

GlaxoSmithKline reportedly pulled its bid to purchase Pfizer's consumer healthcare business March 23, according to Reuters.

Here are four things to know about the situation.

1. GSK CEO Emma Walmsley confirmed the company's decision to withdraw its bid for the business in a statement March 23: "While we will continue to review opportunities that may accelerate our strategy, they must meet our criteria for returns and not compromise our priorities for capital allocation."

2. GSK was seen as the frontrunner to purchase Pfizer's business after consumer goods company Reckitt Benckiser withdrew its bid March 21. Johnson & Johnson, which had also previously expressed interest, stepped away from the auction in January. GSK investors were reportedly divided about the potential acquisition, with some worrying about potential risk to GSK's dividend, according to Reuters.

3. Pfizer, which valued its consumer health business at roughly $20 billion, will continue to evaluate alternative actions for the business, including a potential spinoff or sale, or may retain it altogether, according to the report. A spokesperson for the company told Reuters March 23, "We have not yet made a decision, but continue to expect to make one in 2018."

4. Sources familiar with the matter told Reuters Pfizer may have received additional bids for the business. Another source told the publication the company may also try to tap private equity funds.

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