The proposed acquisition of Danone by Unilever

• Autor(a) principal: Carvalho, Ana Margarida Almeida
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/31319
• topic: Mergers & Acquisitions; Consumer goods; Healthy food; Fusões e Aquisições; Bens de consumo; Comida saudável; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The purpose of this dissertation is to propose an acquisition in the Consumer Goods Sector. This Sector has been consistently growing in the last years, and Investment Analysts forecast it as one of the fastest moving in the next years. The proposed companies are Unilever as acquirer and Danone as target. Danone is a unique opportunity for Unilever to acquire a company that has brands loved by million families across countries and a strong pathway for delivering long term sustainable value to the economy and environment. Unilever and Danone have an intrinsic value of €123 046million and €44 507million, respectively. The acquisition would follow a friendly takeover with a bid price of €56 265 million, which represents a 30% premium over the market capitalization of the target as of 29th May 2020. The offer would be 80% cash and 20% equity, financed by cash reserves and the issuance of debt. In term of shares, Unilever would need to issue 242million shares for the acquisition. It is expected that the proposed acquisition yield €13 967million in synergies and deliver €2 208 million value to acquirer shareholders.