Haleon Increases Ownership of China JV to 100%
Why we think this is good
This transaction represents a positive step for Haleon, as it consolidates the company's position in the growing Chinese OTC market by increasing its ownership of the TSKF joint venture to 100%. The acquisition is being funded through a combination of Haleon's existing cash resources and new debt, which suggests a strong financial position and commitment to the opportunity. While the RNS does not provide detailed financial information, the significant size of the transaction relative to Haleon's market capitalization indicates a meaningful revenue opportunity. Additionally, TSKF's status as a leading OTC company in China suggests potential for ongoing growth and market leadership. Overall, the transaction appears to be a strategic move that aligns with Haleon's focus on expanding its presence in key markets.
Key Points
- Haleon to acquire remaining 12% equity interest in China JV TSKF for £0.2 billion
- TSKF will become a wholly owned subsidiary of Haleon
- Acquisition to be funded through Haleon's cash resources and new debt
- TSKF is a leading OTC company in China, distributing Haleon's branded products
Summary
Haleon has announced that it will acquire the remaining 12% equity interest in its China joint venture, TSKF Pharmaceutical Co., Ltd., for a total consideration of RMB 1,623 million (c. £0.2 billion). This transaction will result in TSKF becoming a wholly owned subsidiary of Haleon. The acquisition is expected to be funded through a combination of Haleon's existing cash resources and new third-party Renminbi-denominated debt. TSKF is a leading OTC company in China that manufactures and distributes Haleon's branded products in the country, and this move will further strengthen Haleon's position in the growing Chinese market.