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Pfizer Closes JV With GlaxoSmithKline, Forms GSK Consumer Healthcare

Pfizer Inc. (PFE) announced the closing of its joint venture with GlaxoSmithKline plc (GSK,GSK.L) to combine their respective consumer healthcare businesses.

The combined business, which will operate globally as GSK Consumer Healthcare, is now the world's largest over-the-counter or OTC business in Pain Relief, Respiratory and Vitamins, Minerals and Supplements, and Therapeutic Oral Health.

Under the deal terms, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. The new JV will be led by CEO Brian McNamara.

As part of the agreement, Pfizer has appointed three out of the nine members of the joint venture's board.

Pfizer expects the transaction would deliver $650 million in peak cost synergies and to be slightly accretive on a full-year basis in each of the first three years following the closing.

GSK intends to separate the joint venture as an independent company through a demerger of its equity interest to its shareholders. The company plans to list the joint venture on the UK equity market.

GSK will have the sole right to decide whether and when to initiate a separation and listing for a period of five years following the closing.

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