THE WHAT? Unilever CEO Fernando Fernandez has stated that the company is allocating approximately €1.5 billion (US$1.74 billion) annually for mergers and acquisitions, with a strong focus on opportunities in the United States.
THE DETAILS Fernandez disclosed the figure at a JPMorgan-hosted event, noting that U.S. assets represent a primary target area for future transactions. The announcement follows the formal demerger of Unilever’s ice cream division, now operating as The Magnum Ice Cream Company, which commenced trading in Amsterdam on Monday.
Post-separation, Unilever expects its second-half operating margin to reach at least 19.5%. This compares with a reported 18.5% margin when the ice cream division was still included in group results.
THE WHY? The confirmed M&A allocation outlines Unilever’s capital deployment plans following the spin-off of its ice cream business and indicates the company’s geographic focus for potential transactions.
Source: Reuters
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