Unilever Sells Ivorian Unit to SDTM-Led Group Amid Revenue Decline
TLDR
- Unilever Overseas Holdings has agreed to sell its Ivorian subsidiary (BRVM: UNLC) to a consortium led by Société de distribution de toutes marchandises Côte d'Ivoire (SDTM CI)
- SDTM CI, a subsidiary of Ivorian conglomerate Carré d'Or, currently handles Coca-Cola bottling and distribution in Côte d'Ivoire
- The sale awaits regulatory approvals with completion expected in the coming months. For SDTM CI, the acquisition aims to strengthen its position
Unilever Overseas Holdings has agreed to sell its Ivorian subsidiary (BRVM: UNLC) to a consortium led by Société de distribution de toutes marchandises Côte d'Ivoire (SDTM CI), the company said. The transaction involves 9,163,608 shares, representing 99.78% of Unilever CI's share capital and voting rights. The company's share capital stands at 24,936 billion FCFA ($41.7 million). Financial terms were not disclosed.
SDTM CI, a subsidiary of Ivorian conglomerate Carré d'Or, currently handles Coca-Cola bottling and distribution in Côte d'Ivoire. Unilever stated that a transition period will ensure operational continuity and service quality.
The sale awaits regulatory approvals with completion expected in the coming months. For SDTM CI, the acquisition aims to strengthen its position in agribusiness and mass retail sectors while expanding its West African portfolio.
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Key Takeaways
The divestment comes as Unilever faces significant market challenges in Côte d'Ivoire. The Anglo-Dutch consumer goods giant has seen revenues decline sharply in recent years. Unilever CI's turnover fell from 46 billion FCFA ($76.9 million) in 2021 to 36.1 billion FCFA ($60.3 million) in 2022, a 21.4% drop. This was followed by a further 4% decline to 34.6 billion FCFA ($57.8 million) in 2023. The company, known for brands including Calvé mayonnaise, Omo detergent, and Signal toothpaste, has struggled to maintain market share amid increasing competition in the West African consumer goods sector.
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