Unilever push in Asia
further strengthen its foods operations across the Asian market
with an agreement to acquire the outstanding shares in CPC/Aji
Asia, a 50-50 joint venture, from Japanese company Ajinomoto.
Anglo-Dutch food giant Unilever reports this week that it will further strengthen its foods operations across the Asian market with an agreement to acquire the outstanding shares in CPC/Aji Asia, a 50-50 joint venture, from Japanese company Ajinomoto.
The acquisition will be in two parts with approximately one half of Ajinomoto's holding being transferred on 25 March, 2003 and the balance scheduled for transfer in March next year. Unilever will pay US$381 million for Ajinomoto's equity holding, valuing the total equity at US$762 million (US$795 mln ungeared).
Unilever Foods director Patrick Cescau, said: "This is a strategically important acquisition for Unilever as it further strengthens the presence of our leading brands in a high growth regional market of more than 190 million consumers.
"The full integration of the acquired business into our Unilever Bestfoods Asia operations will give it total access to our innovation capabilities and distribution network strength, and will provide the fuel for higher investment behind our brands" .
Unilever will have full management control of the entire business from 25 March, 2003 and 100 per cent of the sales and operating profit will be consolidated from that time. The deal is subject to approval by regulatory authorities.
CPC/Aji began as a joint venture between Bestfoods and Ajinomoto in 1987, with Bestfoods' share transferring to Unilever on its acquisition of Bestfoods in 2000. It has six factories in five countries - Hong Kong, Thailand, Malaysia, Philippines (2) and Taiwan, as well as a sales/marketing office in Singapore.
CPC/Aji's leading brands, which accounted for more than 80 per cent of its total 2002 sales of some US$330 million, include Hellmann's mayonnaise, Knorr soups, and Skippy peanut butter.
