Glaxo-Burroughs merge in 14:10

Both companies would now seek approval of shareholders and the Bombay High Court for the merger, he said.

Kalyanasundaram said the cash surplus of both entities stood at Rs 500 crore and the company would look at various options such as acquisitions of brands and buyback of shares for utilising the amount.

For the year ended December 31, 2003, GSK and BWIL ended with a net profit of Rs 172.23 crore and net loss of Rs 5.81 crore respectively. Net sales for GSK stood at Rs 1,191.69 crore while that of BWIL were pegged at Rs 198.67 crore.

GSK markets a wide range of ethical formulations and is a leader in therapeutic areas of respiratory, dermatology and vaccines, besides having a significant presence in antibiotics, gastroenterology, dietary supplements, gynaecology, neurology and intensive care.