The revamp is the boldest move yet by chief executive Emma Walmsley, who took over a year ago.
Emma Walmsley has previously played down the idea of breaking up the group, something that a number of investors have called for over the years.
In a statement, GSK said: 'Within three years of the closing of the transaction, GSK intends to separate the joint venture via a demerger of its equity interest and a listing of GSK Consumer Healthcare on the United Kingdom equity market.
The joint venture will go by the name of GSK Consumer Healthcare.
Within three years of closing of the deal Glaxo intends to separate and float the joint venture in London, which will be one of two separate companies: one focused on consumer healthcare and the other on pharmaceuticals and vaccines.
The combination of the two divisions will bring together two large portfolios of consumer health brands, which include GSK's Sensodyne, Voltaren and Panadol, and Pfizer's Advil, Centrum and Caltrate.
The new joint venture with Pfizer is expected to generate total annual cost savings of 500 million pounds by 2022 for expected total cash costs of 900 million and non-cash charges of 300 million.
GSK said it still plans to pay shareholders a dividend of 80p per share for 2018, and announced plans to pay 80p per share for 2019 as well.
Pfizer employs about 3,200 people in six sites here across manufacturing, shared services, R&D, treasury and commercial operations.