Fears are emerging for the future of Unilever employees, after Kraft-Heinz failed to win over the corporate with its $143bn takeover offer.
After Unilever – the owner of Dove, REN and Dermalogica – walked away from the offer, it released a press statement saying: “Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders.
“The events of the last week have highlighted the need to capture more quickly the value we see in Unilever.
“We expect the review to be completed by early April, after which we will communicate further.”
However, trade union GMB has been rattled by the message, which it described as “opaque” and has since requested a briefing at the next trade union forum to explain what these options are, as well as any potential fall-out from the failed deal.
Prior to Unilever's rejection of the bid, trade union Unite also warned against the deal. At the time it stated: “Unite does not believe this takeover is either in Kraft-Heinz workers’ interests or those of Unilever and that ultimately it will lead to jobs losses and poorer products for consumers.”
3G are nothing short of sharks – acquiring companies with borrowed cash and saddling them with debt.
Unilever was approached by Kraft-Heinz in February. Kraft-Heinz’s key investors include investment magnate Warren Buffett and private equity investor Jorge Lemann, the latter of whom is among the backers of 3G Capital.
However, Anglo-Dutch Unilever was quick to dismiss the US company’s offer, which was withdrawn just two days after proposal.
The Guardian reported that Chief Executive Paul Polman was understood to have warned Buffett and Lemann that there was “no appetite” for the offer at boardroom level and among investors.
Despite a 'no deal' result, fears still remain that Unilever might now be reassessing its strategy in light of the offer.
GMB stated that 3G's business model is based on "relentlessly cutting costs in the name of profit".
Eamon O’Hearn, GMB National Officer, said: “GMB members working for Unilever had a lucky escape when the Kraft-Heinz takeover failed.
“3G are nothing short of sharks – acquiring companies with borrowed cash and saddling them with debt – ruthlessly cutting everything they can including staff to maximise profits before selling up and moving on.
“But the danger may not be over for our members. Unilever has a proud history, and many progressive employment practices, however, GMB is concerned that it's statement sounds like the botched takeover has scared them into adopting 3G’s slash and burn tactics.
“We’re expecting Unilever to be transparent about their plans and provide reassurances to our members about their commitment to quality UK jobs.”