Unilever PLC announced a new €1.5 billion (about $1.74 billion) annual budget for mergers and acquisitions, with a clear emphasis on transactions in the United States. The move is part of the company’s Growth Action Plan 2030, which seeks to accelerate growth through high‑margin, high‑growth categories such as beauty, wellbeing and personal care.
The budget follows the completion of Unilever’s ice‑cream spin‑off, which was finalized over the weekend of December 6‑7, 2025. The separation of the ice‑cream business into The Magnum Ice Cream Company simplified Unilever’s structure and freed capital that can now be deployed to pursue bolt‑on acquisitions that reinforce its core portfolio. While the company has historically invested in acquisitions, the new allocation signals a deliberate acceleration of that strategy.
CEO Fernando Fernandez said the focus on U.S. and India deals reflects the company’s “Desire at Scale” strategy, which aims to build a future‑fit portfolio of power brands that can command premium pricing. “Every penny of M&A will be deployed only in the US and India,” Fernandez added, underscoring the geographic priority and the intent to strengthen market presence in those high‑growth regions.
The announcement is a strategic pivot toward premium, high‑margin segments. By concentrating on bolt‑on acquisitions that complement its beauty, wellbeing and personal‑care brands, Unilever intends to deepen its footprint in the U.S. and India, where demand for premium products is rising. The move also aligns with the company’s broader goal of transforming into a higher‑growth, higher‑margin consumer‑goods business after the ice‑cream spin‑off.
Analysts have noted the positive implications of the new budget. Barclays, for example, views Unilever as a compelling stock for 2026, citing the company’s focus on premiumization and the momentum generated by the spin‑off. The M&A commitment is expected to accelerate portfolio consolidation and drive long‑term growth.
Overall, Unilever’s €1.5 billion annual M&A budget signals a decisive shift toward premium, high‑growth markets and a clearer path to achieving the Growth Action Plan 2030 objectives. The company’s focus on U.S. and India acquisitions, coupled with the freed capital from the ice‑cream spin‑off, positions Unilever to capture new opportunities and strengthen its competitive advantage in key growth segments.
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