Losses and profits. It happens that we find medicines in a domestic refrigerator, but this is not their primary destination. The jar of mayonnaise is rarely found next to the box of ibuprofen. However, it is the dream of one of the largest grocers in the world, the British Unilever. It is trying to buy the consumer pharmaceutical division of another British company, the GSK laboratory.
There are Sensodyne toothpastes or Advil tablets. Unilever, which had torn the hearts of His Majesty’s subjects by selling its Lipton teas in the autumn of 2021, has in its cupboards Knorr soups, Omo and Skip detergents, Dove soaps, Maille mustard or Hellmann mayonnaise, not to mention Miko or Ben. & Jerry’s ice cream. He is ready to pay dearly to enter the medicine box. It offers 60 billion euros, 80% in cash and the rest in shares.
It would be one of the biggest deals in the city’s history. But this is not enough for the seller. GSK, which earns a lot of money from this activity, believes that the company is worth more and intends to continue the process of listing this activity on the stock market. Investors are urging GSK to sell this consumer division to refocus on advanced pharmacy, but they understand, on the other hand, that we can sell tablets against headaches and products to unclog toilets. (Domestos). It’s all about return on investment.
And precisely, as far as Unilever is concerned, anger is developing. For a year, the company was on the stock market. It lost almost 10%, while its competitors Nestlé and Procter & Gamble increased by 20%. Terry Smith, a British long-term investor, lays out a strategy that is rustic, but which has the merit of simplicity: choose good companies, buy cheap and get out of it.
Among the top ten shareholders of Unilever, but this time he pushed a rant, as the Financial Times. “The management of Unilever is obsessed with making public commitments about the environmental and social sustainability of its business, rather than focusing on the fundamentals of its business.”
To focus too much on the purpose of their mayonnaise, they forget to make money. Good feelings don’t necessarily make good business.