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)

Copyright (c) 2022 Dow Jones & Company, Inc.
Unilever (LSE:ULVR)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Unilever Charts.
Unilever (LSE:ULVR)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Unilever Charts.