What's going on?

GlaxoSmithKline (GSK) rejected a bid from Unilever to buy its consumer health business, after a measly $68 billion offer left a sour taste in the pharma giant�s mouth.

What does this mean?

GSK announced plans last year to list its consumer health business � which�makes household products like Sensodyne and Panadol � on the stock market, in hopes the cash it raises will reinvigorate its flailing pharma businesses. But it looks like Unilever thinks GSK might be convinced to sell the segment instead, with the consumer goods giant reportedly putting in a bid of $68 billion last month. That�s its third offer, but this one fell on deaf ears too: GSK reckons Unilever is undervaluing the business, and plans to plow ahead with a mid-year listing as intended.

Why should I care?

For markets: Analysts say stop.
There might still be hope for the deal: Unilever said on Monday that it plans to double down on its health and hygiene businesses, which suggests it might be prepared to up its bid. In fact, the consumer staples giant has reportedly already discussed raising more cash to sweeten the deal. But analysts aren�t so sure that�s a good idea, in part because the high price tag makes it unlikely the company will actually generate a meaningful return. You don�t need to tell investors twice: they sent Unilever�s shares down 6% on Monday.

For you personally: Those investors might be overlooking something.
Even if you don�t buy into Unilever�s plan, you might still want to buy into Unilever itself: the consumer staples company � which sells everyday essentials � is uniquely able to push rising costs onto its customers without losing them to competitors. That�s particularly appealing in these high-inflation times, and could be why an index that tracks some of the world�s biggest consumer staples has been outperforming the US stock market since the start of the year.