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Russian cosmetics deal proves Unilever’s emerging markets heft (UL)

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The Russian Federal Antimonopoly Service has granted Unilever (UL) permission to acquire 100% of Kalina, Russia's biggest cosmetics manufacturer. The deal is likely to close before the end of the year.

Unilever already owned 82% of the company, and is expected to offer a buyout to Kalina's remaining minority shareholders within the next six weeks.

TKB Capital analyst Natasha Kolupaeva reports that the buyout price should not be less than the highest deal price or the market's 6-month weighted average. Based on the current benchmarks, Kulopaeva predicts a 9% upside for current Kalina shareholders.

Kalina trades on the Russian Trading System (RTS) stock exchange but is sadly unavailable to U.S. retail investors.

However, Unilever has been investing heavily in emerging markets, including a recent $600 million commitment to expand its factories in Indonesia .

In an interview with Reuters earlier this year, CEO Paul Polman said, "soon we will have 75% of our turnover in emerging markets, 70-75% by the end of decade."

The markets seem to like this strategy. Unilever stock has been rising steadily since March, and is now trading at a 5-year-high.

As such, traders who want exposure to the emerging markets consumer -- and soon, the Russian consumer in particular -- may not need to search beyond UL.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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