Unilever to sell Myanmar joint venture stake, deal expected to close in 2027

Nov 5 (Reuters) - Consumer goods giant Unilever said on Thursday that it will exit a joint venture in Myanmar, even as a new military-backed government in the war-torn Southeast Asian country seeks to drum up foreign investment. 

• "Unilever can confirm that it has agreed to sell its shareholding in Unilever EAC Myanmar Company Limited (UEMCL) to Centig Holding Company Limited, an affiliate of its local joint venture partner Europe and Asia Commercial Company Limited (EAC)," a Unilever spokesperson said in response to questions from Reuters

• Unilever, which entered the Myanmar market in 2010, signed a joint venture deal with EAC in 2017

• Completion of the sale is expected in 2027 and remains subject to legal and regulatory approvals, according to the spokesperson, who did not disclose financial terms of the transaction

• The news was first reported by Khit Thit media, a Myanmar news outlet

• Myanmar has been in turmoil since early 2021 when the military ousted an elected civilian government, triggering widespread protests that expanded into a nationwide civil war against the junta

• Since a widely criticised election at the turn of the year, junta chief-turned-president, Min Aung Hlaing, has travelled across Southeast Asian capitals seeking foreign investment

• A decade ago, following the military ceding power to a quasi-civilian government, Myanmar enjoyed one of the fastest growth rates in the region on the back of rapid reforms, including the relaxation of foreign investment rules

• The World Bank in June cut its forecast for Myanmar's real GDP growth to 2.0% in the 2026/27 fiscal year, which began in April, from a projection of 3.0% made before the war in Iran caused a global energy shock

(Reporting by Devjyot Ghoshal and Poppy McPherson; Editing by Martin Petty)