Procter & Gamble will have to review the sale of their detergent brands Masterful and laundry soap Ariel after the Argentine Dreamco, with which it closed the sale last September, reported that the operation had failed.
“There are no conditions to proceed with the agreement, so we regret to confirm it the acquisition will not take place of the Ariel and Magistral brands and the Pilar factory and distribution center”the company reports.
Although the company did not clarify it, the problem would be linked to the transfer of employees. A group of the 400 workers involved reportedly objected to the change in conditions resulting from the operation.
It was created recently, Dreamco has experience in the industrial sector: owns 3 factories located in the province of Buenos Aires and brands such as Plusbelle, Campos Verdes and Limol in personal care; Zorro, Limzul and Federal in home care and Okebón, Molino Natural, Girotondo and Panal in nutrition.
Procter & Gamble is an American consumer giant with sales of $85 billion, launched at the end of the year Check your activities in Argentina.
The company, which established itself in the country at the beginning of the 1990s, owns, in addition to the assets sold to Dreamco, the plant in Villa Mercedes, San Luis, where it produces diapers (Pampers), feminine wipes (Always) and a portion of Gillette products. He also has brands of shampoo Pantene, Head and Shoulders and Oral-B in dental care.
“Argentina right now is a business worth around 400 million dollars. But we need to decide what exactly the plan is for Argentina. We have divested from the commercial side Fabrics and home care (clothing and home care) and, in the rest, we will still have to see“, said Andre Schulten, chief financial officer of the company worldwide. In that area They also still have Downy fabric softener.
Schulten say Argentina as an example of markets where “becomes increasingly difficult to manage It’s getting harder create dollar value Americans.”
“When you think about places like Nigeria, when you think about places like Argentina, it is very difficult for us, as a company operating in US dollars, to create value. It is also difficult to operate due to the macroeconomic environment.”he said in his speech at the conference organized by Morgan Stanley and which can be found on the Internet.
“So,” he added, “with that in mind, we are announcing a very specific restructuring program, with the intention of adapting the operating model and adjusting the portfolio in some markets. “The restructuring program will focus mainly on Nigeria and Argentina.”
Source: Clarin
