Unilever spins off Tea brands in £4bn bid
Unilever’s Tea Segment is up for bidding as the world’s biggest buyout firms teams up with an Asian sovereign wealth fund to table a £4bn offer for PG Tips and other leading tea brands owned by the FMCG giant.
In 2020, Unilever global headquarters announced a strategic review of the global tea business which includes leading brands such as Lipton, Brooke Bond and PG Tip. The review, according to Unilever, has prompted the decision to retain the tea businesses in India and Indonesia, as well as the partnership interests in the ready-to drink joint venture, while noting that the tea business potential can best be achieved as a separate entity.
If confirmed, the Advent-GIC consortium would be pitted against rival suitors including a combined offer from Cinven and the Abu Dhabi Investment Authority, as well as interest from Carlyle, Clayton Dubilier & Rice and KKR, three other large private equity firms.
In January, Unilever also notified The Nigerian Stock Exchange and esteemed shareholders of its plan to separate the Unilever Nigeria Plc tea business into a separate legal entity. According to the consumer goods leader, the planned separation will go through the normal approval process and is expected to be concluded by the end of 2021.
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