EXHIBIT 99.1
UNILEVER/BESTFOODS MERGER CLEARED BY EU COMMISSION
-- REMEDIES PACKAGE AGREED TO ADDRESS COMPETITION CONCERNS --
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Unilever's proposed merger with Bestfoods was today approved by the
European Commission, allowing the transaction to proceed.
As part of the EU clearance decision, Unilever has given commitments to
dispose of certain businesses where the Commission has identified overlap
issues. These are its Bla Band brand in Sweden, Finland and Denmark; its
Batchelors brand in the UK; its McDonnells brand in Ireland; and its Oxo
and Royco brands in Europe. It has also agreed to dispose of the Bestfoods'
Lesieur range of mayonnaise products in France. The combined sales turnover
of the businesses to be sold is [EURO]400 million (est. retail value
[EURO]500 million).
Unilever will conduct the disposal programme so as to serve the best
interests of all its stakeholders. Information and consultation procedures
with workers' representatives and the European Works Council are in
progress. Goldman Sachs has been engaged to assist Unilever in the sales
process.
Unilever chairmen, Antony Burgmans and Niall FitzGerald, said: "We are
pleased that the transaction has been given the green light by the EU
Commission. As anticipated, some parts of our business have to be sold,
however the merger with Bestfoods will bring major international brands
into our business. We are confident the new organisation will have great
potential for delivering rapid innovation and growth."
The proposed merger will result in a foods business with a portfolio of
leading international and regional brands, such as Lipton, Knorr, and
Hellmann's, and creates a strong foodservice business within Unilever. Both
companies complement each other geographically.
Today's decision by the EU Commission gives Unilever and Bestfoods the
necessary regulatory approvals to complete the transaction. Earlier, on
September 9, the transaction was allowed to proceed in the US.
The proposed transaction remains subject to certain conditions contained in
the merger agreement, including the approval by the shareholders of
Bestfoods, Unilever NV and Unilever PLC. The Bestfoods and Unilever
shareholders meetings are scheduled for October 2, 2000.
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SEPTEMBER 28, 2000
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Enclosure
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995:
This press release contains certain "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are naturally
subject to uncertainty and changes in circumstances. Actual results may
vary materially from the expectations contained herein. The forward-looking
statements contained herein include statements about completion of the
pending acquisition of Bestfoods by Unilever. Factors that could cause
actual results to differ materially from those described herein include:
the inability to obtain necessary antitrust approvals and actions of the
U.S., foreign and local governments. More detailed information about these
factors is set forth in the reports filed by Bestfoods and furnished by
Unilever with the Securities and Exchange Commission. Neither Unilever nor
Bestfoods is under any obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise
In connection with the merger, Bestfoods has filed a definitive proxy
statement with the Securities and Exchange Commission and mailed copies of
this definitive proxy statement to Bestfoods security holders. SECURITY
HOLDERS OF BESTFOODS ARE URGED TO READ THE PROXY STATEMENT BECAUSE IT
CONTAINS IMPORTANT INFORMATION REGARDING THE MERGER. Investors and security
holders may obtain a free copy of the proxy statement and other documents
filed by Bestfoods with, and furnished by Unilever to, the Securities and
Exchange Commission in connection with the merger at the Securities and
Exchange Commission's web-site at www.sec.gov. Security holders of
Bestfoods may also obtain for free a copy of the proxy statement and other
documents filed with the Securities and Exchange Commission by Bestfoods in
connection with the merger by contacting Rainer H. Mimberg, Investor
Relations, +1 201 894 2837. Security holders of Bestfoods may also obtain
for free copies of documents furnished to the Securities and Exchange
Commission by Unilever in connection with the merger by contacting Howard
Green, Investor Relations, +44 207 822 6824.
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