CCI Approves Corporate Reorganization of Unilever PLC and Unilever NV*

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On May 31, 2018, CCI approved the corporate reorganization of the Unilever Group to simplify the existing legal structure, currently headed by Unilever PLC and Unilever NV, under a single new holding company i.e. ‘New NV’. Unilever PLC (along with Unilever NV) is the ultimate parent company of the Unilever group.

The Unilever Group is one of the largest consumer companies and its business is organised in three divisions, which operates through: (i) Beauty & Personal Care, (ii) Home Care and (iii) Foods & Refreshment. In India, the Unilever group is primarily present through Hindustan Unilever Limited (‘HUL’), a public limited company and listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. HUL is inter alia, engaged in manufacture and sale of product such as soaps, detergents, shampoo, skin care, toothpaste, and deodorant.

CCI observed that Unilever PLC and Unilever NV had been operating as a single economic entity. Further, post the proposed transaction the joint control being currently exercised by Unilever PLC and Unilever NV over the Unilever group would subsume into New NV. There would be no change in the shareholding pattern or management of any of the companies of the Unilever group. Accordingly, CCI concluded that the proposed transaction was not likely to have any AAEC in any market in India, and approved the same.

*Combination Registration No. C-2018/05/569.

Published In:Inter Alia Special Edition Competition Law September 2018 [ English
Date: September 26, 2018