The City of London has given its blessing to a dramatic break-up of consumer goods giant Unilever, which could see the food arm that makes Hellmann's mayonnaise spun off into a new £30-billion-plus (about R480-billion) company.
The Anglo-Dutch giant has launched a far-reaching strategic review just days after its independence was threatened by an audacious £115-billion takeover approach from Kraft Heinz.
"A spin-off makes sense on paper and if the management can make it work, then we would be sold on that.
"It would be the most palatable option," said Matthew Tillett, fund manager at Allianz, the 14th largest holder of Unilever's Dutch shares.
The move would give greater visibility between the higher earnings in its booming home and personal-care division, which includes Dove soap, Lynx, Persil and Domestos brands, and its more sluggish food division.
The group's personal-care division accounts for about 60% sales, growing at a rate of 4.2%.
Its food division has sales of £10-billion and is growing sales at less than half that rate as consumers shun established packaged food brands in favour of healthy or artisanal products.
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