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Unilever is investing £ 50bn in the GSK Consumer Health Unit

Unilever defended £ 50bn in the GlaxoSmithKline consumer health sector as the move led some researchers to question and cut 6 per cent of sales for the first sale on Monday.

Dove soap maker, Hellmann mayonnaise and Domestos bleach said GSK’s business was “very good”, as it developed plans to increase its availability in health, beauty and hygiene.

“These acquisitions could lead to the growth and development of integrated operations in the US, China, and India, with further opportunities in other coming markets,” he said, adding that it would sell “low-income businesses”.

GSK Consumer Healthcare’s Unilever methods, which include a combination of Aquafresh and Panadol toothpaste, have been criticized to date, but the group is still waiting for action, according to experts familiar with the matter.

Unilever shares fell 6 percent in the first sale to 3707p, while GSK shares rose 5 percent to 1727p.

GSK and Pfizer, which own a 32 percent stake in consumer health sector, are expected to raise a minimum of £ 60bn. GSK says Unilever’s £ 50bn offer for “nonprofit” business is set to resume later this year.

The release of the call over the weekend prompted Unilever to issue an announcement of plans for its ever-expanding history. Chief Executive Alan Jope, who has led the group since early 2019, is being pressured to change the performance – and share price – of the remaining candidates.

However, experts were quick to cast doubt on whether GSK’s business could be bought, as well as the potential debt Unilever could have.

James Edwardes-Jones, an expert at RBC Capital Markets, said: “We see little reason for such an intellectual, professional or economic partnership. Even a thoughtful reflection on this raises questions in our mind about managers’ confidence in existing business.”

Bruno Monteyne, a Bernstein analyst, said the sale included “£ 10bn of stock losses”.

Martin Deboo, a research expert at Jefferies, said that “initial feedback from the fundraisers over the weekend has been very difficult”, which clearly shows little confidence in Unilever’s management and the potential for the deal to boost growth, along with concerns about debt.

Unilever said after finding everything “the company wants to get back to the latest and most recent trends”.

The FTSE 100 team will be launching “a major way to improve our work” by the end of this month, including changes in its design. This follows last year’s old plan, which met with a warm response.

Unilever has faced dissatisfaction with the growing number of investors because of the existing system of promoting growth, including the uprising of Terry Smith’s 10 shareholders last week.

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