Unilever Offers for Bestfoods

May 3, 2000

Unilever NV made an unsolicited takeover offer for Bestfoods, THE WALL STREET JOURNAL reports. The move could signal an increased wave of consolidation in the food industry.

The merger trend of recent years has not affected food companies as much as firms in other sectors. Food makers have not been seen as among the most attractive takeover targets, and with the market capitalizations of many companies roughly similar, there is a lack of "deep-pockets" acquirers, THE JOURNAL says.

Despite this lower level of activity, consolidation and mergers are perhaps the hottest political topic in agriculture today. Big mergers in the food industry could make lawmakers even more eager to scrutinize takeover activity. On the other hand, a merger trend among food manufacturers may increase the pressures for consolidation farther back in the food chain, including among producers.