Unilever Has $36 Billion in Tasty M&A Options |
Options have value. And it’s become clear this week that Fernando Fernandez has more than one when it comes to setting a new course for Unilever Plc’s food business, owner of Hellmann’s mayo and Knorr stock cubes. How the consumer giant’s still relatively new chief executive officer plays his hand will likely define his tenure.
The industry is dining out on the idea that focused business models beat conglomerates. Unilever, with a market capitalization of £101 billion ($135 billion) is an obvious candidate for simplification. Its food division represents around one-quarter of sales and has different dynamics from the home, personal care and beauty brands that deliver the bulk of revenue. Analysts at Jefferies Financial Group Inc. ascribe the unit a €31 billion ($36 billion) enterprise value.