Unilever (LON:ULVR) recently offered to buy GlaxoSmithKline’s (GSK; NYSE:GSK) consumer healthcare unit for £50 billion (about $68 billion).
After facing pushback from analysts, investors and credit rating agencies about the deal, Unilever has abandoned the pursuit.
In an announcement, the company said it would not raise its offer above £50 billion, noting that it was committed to “strict financial discipline.”
The GSK consumer unit, of which Pfizer (NYSE:PFE) owns 32%, manufactures products ranging from toothpaste to Tylenol to vitamins.
GSK has said in the past that it was mulling spinning off the consumer division.
Pfizer and Johnson & Johnson (NYSE:JNJ) have made similar moves.
While GSK aims to focus on higher-margin drugs, Unilever is looking to rekindle growth after the pandemic has reduced demand for its products for hygiene and packaged food and refreshments.