HUL Shares Surge 10% After Co Signs Agreement To Acquires ‘VWash'

Shares of Hindustan Unilever surged up to 10% in intra-day trade on March 24 after the FMCG major acquired Glenmark intimate hygiene brand 'VWash'.

HUL Shares Surge 10% After Co Signs Agreement To Acquires ‘VWash'

In a press release the company said, "The deal includes acquisition of intellectual property rights, including trademarks, design and know-how related to the VWash brand. The consideration has been split into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years".

The execution of the deal is subject to realization of some of the conditions and both HUL and Glenmark are looking at closing the transaction in few months time.

"Glenmark will continue to manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time," the release added.

On March 20, to fight the coronavirus pandemic, HUL announced cut in the price of Lifebuoy sanitizers, liquid handwash and Domex floor cleaners by as much as 15%. Also, the company said it would donate 2 crore Lifebuoy soaps to those sections of the society which need it the most over the next few months.

"In crisis like this Companies have a big role to play. We are working closely with the Governments and our partners to ensure that we overcome this global health crisis together", Sanjiv Mehta, Chairman and Managing Director, HUL, said.

Last, the stock quoted higher by 5.59% or Rs. 104.75 at Rs. 1977.30 per share on the BSE.

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