Why Unilever Stock Tanked 10% at the Open Today
Shares of European consumer goods Goliath Unilever (NYSE: UL) fell a quick 10% at the open of trading on Jan. 18. The drop seems to be related to news that Unilever had failed to secure a deal to buy its way into a new product category. There's a lot going on here.
Unilever has been overhauling its business, most notably by switching from a dual listing to a single listing in late 2020. That change is important because it will make it easier for the consumer goods giant, which sells everything from food to soap, to buy and sell assets. Which is where the drop today comes into play, as Unilever was rebuffed in its attempt to buy GlaxoSmithKline's consumer healthcare business for roughly $68 billion. Unilever is basically looking to get into faster-growing businesses than it currently owns.
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Source Fool.com
