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Report: Apollo, Archer Daniels to make new offer for Unilever's spreads division

Investment management firm Apollo Global Management LLC has teamed up with agricultural trader Archer Daniels Midland Co. and a veteran British turnaround executive to make a new acquisition offer for Unilever Plc's spreads division, the Financial Times reported Dec. 8.

The consumer goods company put the division on the auction block in spring and it reportedly expects to fetch between €6 billion and €7 billion. The division owns the Flora margarine business.

Archer Daniels will act as a strategic partner rather than an investor in this partnership, according to the newspaper. It may also work with Apollo to find synergies in production of spreads, the report said, citing people close to the matter.

Apollo has tapped David Haines, who previously worked as CEO at Germany-based Grohe, as executive chairman to run the division if the acquisition materializes, the report said.

Unilever warned about the uncertainty of a sale and that it could also pursue other alternatives for the division including a public offering, the report said. Even though the spreads division is highly profitable, the consumer goods company is making efforts to exit the business due to falling revenues owing to changing consumer tastes, the report said.

Investment funds including Blackstone Group LP, CVC Capital Partners and GIC Pvt. Ltd. and KKR are other potential bidders for the business, according to press reports.