Kraft Heinz Co (NASDAQ: KHC)'s failed
takeover of Unilever plc (ADR) (NYSE: UL) earlier
this year has left the British consumer goods company "highly energized."
According to a Bloomberg
report, Unilever's CEO Paul Polman told reporters the entire company, from members of the board down to associates selling its
products on the shop floor, came out of the failed merger process "highly energized."
Polman is now taking advantage of the optimistic attitude to protect its status as an independent company after acknowledging
the approach from the American food giant company caught him off guard.
New Game Plan
Polman explained to reporters and the investment community Unilever's new game plan going forward.
First, the company's spreads business, which is valued at around 7.5 billion euros, will be put up for sale and if no buyer
emerges then a spin-off will happen. However, it may not come to that, as Polman said he has received "lots and lots" of interest
from potential buyers.
Second, Unilever will combine its food and refreshments businesses into one single entity that will be domiciled in the
Netherlands. Also, the company will review its structure as an Anglo-Dutch company and make some changes that "opens up the door
for major M&A activity."
Also on the agenda is boosting shareholder value through $5.3 billion worth of share buybacks and a cost-cutting initiative that
targets 3.5 billion euros of savings through 2019.
Finally, Unilever is aiming for a 20 percent underlying operating margin in 2020 which marks an increase from 16.4 percent last
year.
Related Links:
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Buffett's Behind-The-Scenes Look At The Failed Kraft Heinz, Unilever Merger
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Names JPMorgan Initiated Ratings On This Week
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