Unilever ID to sell ice cream business to Magnum Ice Cream ID in US$440m deal

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Unilever Indonesia is reportedly planning to sell its ice cream business to The Magnum Ice Cream Indonesia. This comes as Unilever Group plans to separate its ice cream operations and refocus on its core business in a new global strategy.

According to Jakarta Globe, Padwestiana Kristanti, corporate secretary of Unilever Indonesia, confirmed on Tuesday that the deal was formalised through a Business Transfer Agreement (BTA) signed on 22 November. The transaction is reportedly valued at Rp 7 trillion (US$440.12 million), excluding VAT. The sale includes fixed assets valued at Rp 2.55 trillion at market value and Rp 1.99 trillion in net book value as of 30 September, along with inventory valued at Rp 172.79 billion on the same date.

Don't miss: Unilever to cut fewer jobs as it boosts ice cream business

During the signing of the BTA, The Magnum Ice Cream Indonesia had an affiliate relationship with Unilever Indonesia. However, both companies will no longer have an affiliate relationship following the transaction's completion. MARKETING-INTERACTIVE has reached out for more information.

Earlier in November, it was reported that Unilever is cutting about 1,500 fewer jobs in Europe than initially anticipated. It will also be hiring about 1,000 people, primarily those affected by its cost-cutting drive, for its soon-to-be spun off ice cream business.

The company has been attempting to streamline its business over the past year and said in March this year that it would cut 7,500 jobs worldwide as part of a three-year cost-saving plan. It also said that it would split off its ice cream business in tandem. Unilever's European Works Council (UEWC) has reportedly come out against these decisions, saying a realignment of the ice cream business could have been successfully managed within Unilever, according to Reuters.

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