Active investor Nelson Peltz joins the board of consumer giant Unilever

Brooklyn Beckham’s billionaire father-in-law and active investor Nelson Peltz is set to join Unilever’s board.

Peltz will join as non-executive director from July and will serve as a member of the board’s compensation committee, increasing pressure on the makers of Dove Soap and Hellman’s mayonnaise as it reviews its strategy.

Shares of Unilever rose 7 percent to 3,737.00p, according to Peltz.

Shares of Unilever have fallen far below their 2020 pandemic trough this year and are still 30 percent below the all-time high reached in 2019.

Peltz’s appointment is likely to push Unilever for a major overhaul of its strategy, following a failed प्रयास 50 billion attempt to remove GSK’s consumer healthcare arm earlier this year.

Peltz said in a statement today: “We look forward to working with management and the board to help drive Unilever’s strategy, operations, sustainability and shareholder value.”

Peltz, chief executive and founding partner of New York-based hedge fund Trian, is known for his interest in consumer-oriented firms and for proposing operational changes to his portfolio companies.

Back in 2018, Trian called for several changes to Unilever’s big rival P&G, Peltz finally joining its board after a month-long proxy battle.

Niles Anderson, President of Unilever, said: “We have had extensive and constructive discussions with him and the Trian team and believe that Nelson’s experience in the global consumer goods industry will be invaluable to Unilever.

Analysts at RBC and Credit Suisse welcomed Peltz’s appointment, saying it could have a positive impact on company culture and financial performance.

RBC analysts said: “If not, the presence of at least one active investor could promote collaboration between Unilever’s other shareholders and increase Unilever’s profile in the media to increase accountability for ongoing changes.”

According to Unilever, Trian Fund Management will manage the fund with 37.4 million Unilever shares or about 1.5 percent interest on the group.

Fellow Unilever investor Weaverton Investment Management has welcomed Peltz’s addition to Unilever’s board.

‘Trian … could add new outside ideas,’ said Tineke Frikee, Waverton fund manager.

AJ Bell’s investment director Ross Mold added: “Unilever has accepted the pressure and given active investor Nelson Peltz a seat on the board.

The consumer goods firm is struggling after the failed acquisition of GSK Consumer Health and investors have warmly welcomed the move.

“Inviting Peltz inside is likely to put pressure on troubled CEO Alan Jopp, and we can now see the company’s plans in advance to streamline business and address administrative concerns.”

Unilever has been in turmoil for the past six months

The makers of Unilever, Dove Soap and Magnum Ice Cream have been in turmoil for several years, with their shares falling more than a quarter of what they saw at the end of 2019, and chief executive Alan Jopp’s plans are under scrutiny.

Here, Reuters experts outline the major developments around Unilever over the past six months.

November 18, 2021

Unilever has agreed to sell its global tea business to CVC Capital Partners for ५ 4.5 billion, completing a two-year split review and spinning process.

January 15, 2022

GlaxoSmithKline has rejected a £ 50 billion offer from Unilever for its consumer goods business. The proposal “fundamentally underestimates” the business, GSK said.

GSK received a third view from Unilever on 20 December, offering £ 41.7 billion in cash and ३ 8.3 billion in shares of Unilever.

Unilever has confirmed that it has contacted GSK about buying the business.

January 17, 2022

Unilever called it a “strong strategic fit” and signaled a further deal for GSK’s consumer business, but its shares fell more than 8 percent. The company has also announced that it will take initiatives at the end of the month to strengthen its business.

January 19, 2022

Unilever will not raise its offer for GSK’s consumer healthcare business beyond ५० 50 billion, effectively abandoning the pursuit of the GSK business. Sources told Reuters that GSK would not join Unilever until the offer was finalized.

January 20, 2022

Terry Smith, an influential British fund manager, criticized the failed bid as a “near-death experience” and urged Unilever to focus on strengthening performance.

January 23, 2022

A source told Reuters that activist investor Nelson Peltz’s hedge fund, Trian Partners, had acquired a stake in Unilever, increasing pressure on the company, months after Peltz resigned from the board of rival P&G.

January 24, 2022

Shares of Unilever rose 6 percent, according to a report by Peltz.

January 25, 2022

Unilever has unveiled plans to cut about 1,500 management tasks and reshape its business to focus on five key manufacturing areas as it seeks to boost growth.

March 8, 2022

Unilever has become the first European food company to stop imports and exports from Russia since the country’s invasion of Ukraine.

April 28, 2022

Unilever has raised prices by more than 8 percent in the first quarter and warned of further increases in cost estimates in the second half of the year due to the Ukraine conflict.

Source: Reuters