The share price of Unilever surged by more than 9% yesterday, after the FMCG giant announced that billionaire activist investor Nelson Peltz has agreed to join its board of directors.
Peltz has been gradually ramping up his stake in Unilever via his Trian Fund Management, which now controls a 1.5% stake in Unilever. Given his long history of investor activism at groups such as P&G, Heinz, and Mondelēz, there has been growing speculation that Peltz could push Unilever to either consider breaking or selling off some of its brands.
Unilever said Peltz will join as a non-executive director, effective 20 July 2022. He will additionally serve on Unilever’s compensation committee, giving him direct influence on the pay of Unilever’s directors.
Peltz noted: “We believe [Unilever] is a company with significant potential, through leveraging its portfolio of strong consumer brands and its geographical footprint. Trian has made a considerable investment in Unilever. We look forward to working collaboratively with management and the board to help drive Unilever’s strategy, operations, sustainability, and shareholder value for the benefit of all stakeholders.”
NAM Implications:
- It may take a little time, but anticipate a fundamental shake-up in Unilever.
- A quick redefinition of ‘core’…
- …and a sell-off of the rest.
- Worth a what-if in your categories?
