Shares of Unilever PLC (LON: ULVR) closed the week nearly 3% in the green despite a plunge on Monday and Tuesday that pushed the price to a 4-month low.
Unilever, which owns brands such as Axe, Lynx, Dove, Knorr and Magnum, announced yesterday is the last day it will trade on Amsterdam Stock Exchange after deciding to merge its dual-headed legal structure into a single company amid macroeconomic challenges.
“The boards consider that unification is in the best interests of Unilever, its shareholders and other stakeholders taken as a whole,” Unilever said in a statement.
Analysts praised this move by describing the previous dual-model as “outdated” that hampered the company’s efforts to act quickly on an ever-changing market.
“It’s a seminal moment in Unilever’s history,” said Warren Ackerman, an analyst at Barclays, before adding that the company had to change “an outdated 90-year-old legal system that makes them very slow to act on anything”.
On Wednesday, Unilever said had agreed to acquire Californian nutrition business, SmartyPants Vitamins.
“SmartyPants Vitamins aligns strongly with our mission to improve the health and wellbeing of consumers and empower people to take charge of their health with solutions they can understand and trust,” Fabian Garcia, President of Unilever North America.
Unilever share price bounced off of the 200-DMA this week to facilitate a rebound higher.
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