GlaxoSmithKline bets big on emerging markets in $1bn plan to raise stake in India unit

Britain’s biggest drug maker, GlaxoSmithKline, has set out plans to raise its stake in its Indian business by up to 75 per cent in a deal worth about £629 million.

Glaxo currently owns 50.7% of its listed Indian subsidiary, but said it would pay Rs3,100 (£30.67) per share — 26% more than the last unaffected closing price — to boost its stake in the emerging market.

It’s Glaxo’s second big investment in India this year, while it also boosted a 40.2% holding in its Indian consumer-health care business — which makes one of the country’s most popular drinks, Horlicks — to 75%.

Chief executive Sir Andrew Witty has made clear his strategy to reduce Brentford-based Glaxo’s reliance on traditional prescription drugs  in Western economies where sales are slowing.