Unilever Intends To Materially Expand Its Presence In Health, Beauty, And Hygiene

(RTTNews) - In a planned update released on Monday, Unilever (UN, ULVR.L, UL) stated that GSK Consumer Healthcare would be a strong strategic fit for the company. Unilever believes this would be an attractive and synergistic combination for the shareholders of Unilever, which would also deliver value and certainty for the shareholders of GSK (GSK.L, GSK) and Pfizer.

Following an extensive process to review strategic pathways, the Board of Unilever has concluded that future strategic direction lies in materially expanding its presence in Health, Beauty, and Hygiene. The Board of Unilever also noted that major acquisitions should be accompanied by the accelerated divestment of intrinsically lower growth brands and businesses.

Also, Unilever said it plans to move away from existing matrix to an operating model that will drive greater agility, improve category focus, and strengthen accountability. The company will announce a major initiative later in the month.

Unilever stated that the company is committed to strict financial discipline to ensure that acquisitions create value for shareholders. Following any acquisition, Unilever would target a return to current levels of gearing over the short to medium term.