Unilever bidders may be deterred by new demands on jobs from European works council
Unilever's [LON:ULVR] [AMS:UNA] European works council is demanding job guarantees from the Anglo-Dutch consumer goods group as part of the company’s proposed sale of its spreads unit, The Daily Telegraph reported. This could lessen interest in the sale from bidders in the private-equity sector eager to strip out costs, industry sources warned.
Works council Chairman Hermann Soggeberg said more than 11,000 workers in Europe will be affected by the proposed GBP 6bn (USD 7.8bn) sale of margarine brands and the organisation will be pushing for three-year commitments on jobs. A Unilever spokesperson said the company has started meeting with employee organisations and will take their feedback into account, the item reported.
The works council is influential and previously won similar commitments on jobs when Unilever disposed of its Birdseye business, the report noted.
The private-equity firms Clayton Dubilier & Rice, Bain and CVC are among those considering bids for the spreads unit, the item reported.