This month sees the auction of Unilever’s (ULVR) tea division, which includes leading brands such as PG Tips and Liptons. Bidding is expected to be fierce, with several private equity firms together with the Abu Dhabi and Singapore sovereign wealth authorities understood to be jostling to take ownership.

The sale is the biggest strategic disposal since chief executive Alan Jope was elevated to the top job in May 2019. Since his appointment, however, the shares have underperformed the market, drifting from over £48 to under £40, prompting calls for a shake-up.

Selling the tea business, which is expected to fetch around £4 billion, is a good start in terms of refocusing the group on its core home and personal care brands. It also provides a cash pile to buy into faster-growing sectors such as skincare, where Unilever bought digital-led brand Paula’s Choice earlier this year.

Activist investor Nelson Peltz, who built a $3.5 billion stake in rival consumer goods firm Proctor & Gamble to force change, is believed to be targeting a board seat at Unilever in order to pressure the boardroom to speed up its restructuring with the sale or demerger of its entire food and refreshment division including iconic brands such as Bovril and Magnum. [IC]

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