P&G Not Looking for Hostile Takeovers

Consumer goods giant Procter & Gamble is looking for acquisitions but does not want to fuel growth via hostile takeovers, chairman and chief executive Alan Lafley said on Monday. He declined comment when asked if the maker of consumer products including Pringles crisps, Crest toothpaste and Pampers nappies would be interested in acquiring German consumer goods firm Beiersdorf, which makes Nivea skin products. German insurer Allianz AG is looking to sell its 44% stake in Beiersdorf.

“I cannot comment on Beiersdorf, but I will remind you that acquisitions are part of our growth strategy. But they must be strategic and they must fit culturally. We are not an unfriendly takeover company and we are very patient,” he said. “We are not aggressive…because we want a strong corporate culture,” said Mr. Lafley, who was speaking at a Swiss-American Chamber of Commerce event.

Last week, Beiersdorf shares surged on talk that Anglo-Dutch group Unilever was poised to make a bid. Under Germany’s takeover law, a buyer would have to make an offer for the entire company. P&G has long been a rumored buyer and was in talks last year with Allianz about the Beiersdorf stake.

However they could not agree on price and the U.S. firm was unable to convince family-owned coffee group Tchibo, which holds 30% of Beiersdrof, to sell. Last month P&G bought German health care group Wella in a deal worth 6.5 billion euros and which Mr. Lafley said showed just how patient P&G can be. The firm had been eyeing Wella since the 1980s, he said.

Buying Beiersdorf would help P&G, maker of Oil of Olay, close the gap on France’s L’Oreal in the skin care market and reinforce its business in western Europe, where it has not been growing as fast as it would like. But Mr. Lafley played down the importance of overtaking L’Oreal any time soon.

“The way we think about things is much more long term. We think in terms of 100 years and not quarters,” he said. “We like beauty and health care because the demographics will continue to drive growth. We’re thinking about a beauty and personal care business which will be a leader in 2025 or 2050.” In the meantime, he said, there was “plenty of room” in the market for both L’Oreal and P&G.