Colgate Delivers Detergent Brands to Procter & Gamble Brands

Colgate-Palmolive announced yesterday that the company sold its Southeast Asian heavy industry detergent brands sold in Thailand, Malaysia, Singapore and Hong Kong to Procter & Gamble. Rubin Mark, chairman and chief executive of Colgate, said that the deal aims to eliminate low-margin businesses and focus on the rapid development of high-margin oral care, personal care and pet care businesses. In response, the Department of Foreign Affairs of P&G (China) Co., Ltd. stated that the washing brands involved in this transaction have not entered China yet, and P&G temporarily has not introduced China's arrangement.

It is understood that the two major Japanese cosmetics giants involved in the deal are Fab, Trojan, Dynamo and Paic. Colgate said that as a result of this sale, the two factories that specialize in the detergent business will be closed down, or they will be restructured according to the previously announced restructuring plan of Colgate-Palmolive. For the amount of money expected to be involved in this transaction, both parties have not announced it to the public.

Rubin Mark said, "This simplification of our product portfolio will make us more committed to the strong profits of the oral, personal and pet care business." And the impact of transactions on the Chinese market, P & G (China) Co., Ltd. foreign affairs The senior manager Zhang Qunxiang said that this transaction had no impact on the Chinese market for a while. The major brands involved in cleaning did not currently enter China, and P&G temporarily did not introduce any arrangements for China.

It is understood that Colgate headquarters announced in December 2004 a four-year restructuring plan that cost between 550 million and 660 million U.S. dollars. According to plan, the company will abolish 4400 jobs and close one-third of its factories in order to successfully reduce operating costs, focus its business on more profitable areas such as oral care, and focus its marketing efforts on Eastern Europe, Russia, and China. And some emerging markets in Latin America and Asia.

Insiders pointed out that this reorganization should be a follow-up strategy of Colgate's slimming of its global business several years ago. This reorganization will undoubtedly allow Colgate to maintain its dominance in the toothpaste market.