Colgate might be for sale

The American consumer products company Colgate-Palmolive is willing to negotiate your sale, according to information from The New York Post, citing a source. The price to close a deal would be $ $100 per share, which would rate the company at more than $88 billion. Chief Executive Ian Cook reportedly said in a meeting with institutional investors in recent weeks that could sell the company for $ $100 per share, according to a source heard by The Post.
Unilever, the maker of Dove soap and Axe deodorant, would have an interest in competing for the purchase, according to the source. The potential acquisition of Colgate by Unilever would be a watershed for the anglo-Dutch business in Latin America, in addition to taking her to the oral care market leadership, says the Société Générale.
Last week a shareholder asked the Cook, during the annual meeting, what would be your response if Unilever made a bid, says the paper. "We, as a company, we build value for our shareholders and all participants of our company", said the Executive. "And that''s what we''re going to do, leaving the rumors and speculation follow your own course."
The Post suggests that Procter & Gamble (P&G) could also be interested in Colgate, influenced by activist investor Nelson Peltz. The report cites the Johnson Johnson and the Alliance & formed by billionaire Warren Buffett and the Brazilian conglomerate 3 g Capital, owner of Heinz, Kraft as potential interested in business.
Opportunity
In assessing the House of Jefferies, analysis the potential purchase of Colgate may be a unique opportunity for Unilever. "We have argued that the best strategy for Unilever is to build a new global order '' in personal care with the purchase of Colgate," says analyst Martin Deboo in report. Unilever to sell its food and beverage business to finance part of the acquisition, he said.
The Jefferies believes the Colgate as a highly attractive business to Unilever, which would reach oral care leadership, correcting your weakness in the category, as well as strengthening the company''s presence in products for the home.
"We consider that the two corporate cultures are compatible. There must be minimal, mainly related to antitrust issues India and Latin America, "said Deboo.
At the end, would be created a business where Unilever (after you get rid of the categories of food and drink) would have 100% of their sales in hygiene and personal care, two-thirds of sales in emerging markets and leading positions in many emerging markets, estimates Jefferies.
Net sales totaled $ $15.2 billion of Colgate in 2016, fall of 5.2% in comparison with a year before. The Latin America represents your largest market and accounted for 24 percent of sales last year.
Unilever recorded revenue of 52.71 billion euros in 2016, down 1% on the previous year. According to the company, despite a good overall performance last year, still difficult conditions in markets such as Brazil and India weighed on the results.
In February, Heinz, Kraft power conglomerate controlled by Brazilian Group 3 g and by Investor Warren Buffett, has made an offer of $ $143 billion by Unilever, the anglo-Dutch refused, deemed "not see [the operation] no merit, financial or strategic, to its shareholders."
From that moment on, however, Unilever began to be collected by analysts to seek alternatives to strengthen your business, like any major acquisition.