Anglo-Dutch company Unilever (LON:ULVR) has announced plans to sell margarine spreads business, including brands such as Flora and Stork.
With values estimating €6 – €7 billion, the FTSE 100 company has said that it will either demerge or sell the spread brands as it restructures itself following the failed £115 billion takeover attempt by rival company Kraft Heinz (NASDAQ:KHC).
Though the margarine business is highly profitable, the sales have been slowing as consumers are after more natural products, such as butter.
As well as sell it’s margarine spreads business, Unilever will also buy back €5 billion (£4.3 billion) of shares, whilst also raising its dividend by 12 percent.
The consumer goods giant has unveiled plans for a strategic review in order to boost profitability and increase the pace of growth after managing to rebuff the approach from Kraft Heinz.
“The review that the board has undertaken has been detailed and comprehensive,” said the Unilever chairman, Marijn Dekkers. “It has confirmed that our model of long-term shareholder value creation has been successful and remains as valid as ever. The actions we are now going to take are fully supported by the board.”
On top of these changes, Unilever has also announced plans to also integrate its food and refreshment businesses into a new unit that will be based in the Netherlands.
According to the Unilever chief, it will result in “a leaner and more focused business that will continue to benefit from our global scale and footprint”
The company has made clear that that the decision to review its London and Rotterdam base was not related to Brexit. Instead, it could help Unilever engage in “major acquisitions in the future… and make our shares more attractive to US shareholders should we wish to participate in consolidation should that occur.”
Shares in Unilever were up by 0.8 percent at £39.70 on Thursday morning.