Unilever Looking to Reposition Portfolio After GSK Consumer Healthcare Approach -- Update
January 17 2022 - 3:37AM
Dow Jones News
By Kyle Morris
Unilever PLC said Monday that it has decided to expand its
presence in higher-growth categories after it made an approach for
GSK Consumer Healthcare over the weekend that could potentially be
worth $68 billion.
The Anglo-Dutch consumer-goods group said that, following a
review process, it has concluded that its future strategic
direction lies in materially expanding its presence in
higher-growth categories such as health, beauty, and hygiene. Such
categories offer higher rates of sustainable market growth, with
opportunities to drive growth through investment and innovation,
and through leveraging the company's presence in emerging markets,
it said.
As part of the plan, major acquisitions would be combined with
the accelerated divestment of lower-growth brands and
businesses.
Consumer health has good potential for synergies and GSK
Consumer Healthcare would be a strong strategic fit, the company
said. The acquisition of GSK Consumer Healthcare would create scale
and a growth platform for the combined portfolio in the U.S.,
China, and India, with further opportunities in other emerging
markets.
On Jan. 15, Unilever said it had approached GlaxoSmithKline PLC
and Pfizer Inc. about a deal for their consumer-healthcare joint
venture.
A major initiative to enhance performance will be announced
later this month, the company said.
Write to Kyle Morris at kyle.morris@dowjones.com
(END) Dow Jones Newswires
January 17, 2022 03:22 ET (08:22 GMT)
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