Unilever to Sell Its Spreads Business and Restructure -
By CHAD BRAYAPRIL 6, 2017
LONDON — Under pressure after spurning a blockbuster $143 billion takeover offer, Unilever said on Thursday
that it would explore the sale of its spreads business, restructure two major divisions and buy back $5.3 billion in stock as it seeks to cut costs and appease investors.
The moves, which include overhauling its food and beverage operations, are meant to reassure investors who had seen the possibility of more grocery store shelf space
and cost savings from the takeover bid in February by a fellow food giant, Kraft Heinz.
Mr. Polman said that combining the two segments would lead to a leaner business “that will continue to benefit from our global scale and footprint.”
The spreads business, which includes the margarine brands Country Crock, Flora
and I Can’t Believe It’s Not Butter, was merged two years ago with a baking and cooking segment in Unilever’s foods division.
The company also said it would seek to buy back 5 billion euros, or about $5.3 billion, in stock.
The company said that it had achieved modest growth in sales of its spreads in emerging markets last year, but
that it was not enough to offset continued declines in developed markets, and it would seek to sell or separate the business.
