Unilever to make Whitedent after deal

Unilever will continue producing Whitedent — a herbal toothpaste brand and Baby Soft products for at least three years after acquiring a controlling stake in Chemi & Cotex Kenya Limited.

The Competition Authority of Kenya (CAK) issued the condition in approving the multinational manufacturing giant’s 90 per cent acquisition of the local beauty products maker.

Other brands that Chemi & Cotex Kenya Limited manufacture included in the deal are Bodyline, Skin Glow, Siri, U & Me, Lovely, Bannister and Tressa.

The move comes amid fears that the acquisition would result in some of the products under Chemi & Cotex’s stable being immediately withdrawn from the local market.

“The approval was granted on condition that the acquirer continue providing the target’s products (Whitedent, Bodyline, Baby Soft, Skin Glow, Siri, U & Me, Lovely, Bannister and Tressa) in the market for at least three years upon conclusion of the transaction,” the CAK said in a statement.

Some of the beauty products Unilever manufactures include Vaseline, Geisha, Dove, and St Ives, toothpaste as well as toothbrushes under the Close-Up and Pepsodent brands.

The competition watchdog has in many other acquisitions and mergers directed companies to retain workers for a defined period but did not disclose similar condition for this buyout deal.

The acquisition set for completion in coming months will boost Unilever in its efforts to cement its customer numbers in Kenya.

The deal also comes in a year that Unilever cut the price of its Pepsodent toothpaste by more than half as it eyes increased share in the oral healthcare segment.

The American multinational’s subsidiary cut the price of 150-gramme Pepsodent to Sh99, down from Sh199 in March.

Unilever is facing stiff competition in the local skincare market from Beiersdorf East Africa Limited that produces the Nivea range of products.