0859 GMT - Unilever's potential divestiture of its food business would be strategically sound, analysts at Bernstein say. The U.K. group said it is in talks with U.S. spice maker McCormick after receiving a takeover offer for the unit. Unilever is possibly the most complex consumer packaged goods business in the world, with a hugely diverse geographical and category footprint, the analysts write. This diversification made sense in the 1990s and early 2000s, but the operating model in the industry has changed, they say. "The benefits of scale across categories no longer outweigh the drawbacks of complexity," Bernstein adds. "That said, the timing of these discussions comes as something of a surprise," the brokerage says. About a month ago, Unilever's CEO Fernando Fernandez said that the group had no urgency to act on a food divestiture, they say. Shares rise 1.3%. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 04:59 ET (08:59 GMT)
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