Unilever’s stock as of today is surging by 5% to $ 48.76 in pre-market trading sessions. However, this week the stock market dramatically crashed, losing about 15%; the drop is apparently due to the news that Unilever was unable to conclude a deal to acquire a new product category. Recall that GSK rejected Unilever’s application for 50 billion pounds (almost $68.4 billion) to purchase the Sensodyne division. Sensodyne is a joint venture between GSK and Pfizer, under which the company produces Advil painkillers and various brands of toothpaste, such as Sensodyne, Parodontax, and Aquafresh.
Moreover, the company is aiming to expand into businesses that are more significantly rising than it currently owns. Hence, the company will announce a review of its portfolio structure later this month: the company may sell off slow-growing brands in its portfolio to increase the offer for GlaxoSmithKline’s consumer division. In November, Unilever sold its large tea business, which is comprised of Lipton and Tazo, to CVC Capital Partners for 4.5 billion euros ($ 5.1 billion).