New Delhi: GSK Consumer Healthcare said it will contest an attempt by Steer Engineering to block the transfer of technology that quickens the process of making malt beverages to Hindustan Unilever as part of a planned merger.
“We are contesting allegations made by Steer Engineering and shall take all necessary legal steps before the Delhi High Court. As the matter is sub-judice, we are not in a position to share further details,” a GSK Consumer spokesperson said in response to ET’s query.
Unilever’s India unit announced on December 3 that it will merge GSK Consumer with itself in an all-stock deal that will give it access to Horlicks, Boost and Maltova malted drinks.
The merger values GSK Consumer at Rs 31,700 crore.
Following the merger announcement, Steer Engineering moved the Delhi High Court late last week seeking protection for the technology it had provided for the manufacture of malt beverages Horlicks and Boost.
Steer Engineering said the technology was given exclusively to GSK Consumer and it cannot be transferred to Hindustan Unilever since it is “against the original terms of the contract.”
The company said it has a confidentiality contract with GSK Consumer for the technology, which reduces the time taken to make Horlicks to 15 minutes from 18 hours.