Why Unilever Isn't Spreading Its Bets
On Friday, Unilever plc (NYSE: UL) announced that it's received a binding offer of 6.8 billion euros ($8.1 billion) from investment firm KKR & Co., L.P. (NYSE: KKR) for its global margarine and spreads business. Unilever has been shopping this revenue stream for a while: In recent years, the spreads business has stalled and weighed on the company's top line. Brands like Country Crock, I Can't Believe It's Not Butter, and Becel require heavier marketing today to match the renewed interest in unadulterated butter.
Aside from considerations of profit, the margarine business also doesn't align as well with Unilever's current aspirations to be seen as a provider of more nutritive packaged foods. Let's unpack the financial and cultural logic that resulted in Unilever's disposition of an extremely durable investment.
Image source: Unilever.
Source: Fool.com
Unilever plc ADR Stock
Currently there is a rather positive sentiment for Unilever plc ADR with 5 Buy predictions and 3 Sell predictions.
However, we have a potential of -9.09% for Unilever plc ADR as the target price of 44 € is below the current price of 48.4 €.
