Procter & Gamble to Sell South Africa Unit
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CINCINNATI — The Procter & Gamble Co. said Friday it plans to sell the South African operating unit of its Richardson-Vicks Inc. subsidiary because of “the unequal treatment of human beings” in South Africa.
“P&G; has reached the conclusion that, in light of the political and social situation in South Africa, together with the current unsettled economic climate in that country, it is in the best interests of the corporation and its shareholders that it divest its South African subsidiary,” a company statement said.
The sale of the subsidiary to Whelk Investments Proprietary Ltd., a company recently formed by Richardson-Vicks’ local South African management, is subject to South African government approval.
The company said the 290 employees affected by the sale will retain their jobs. Although 60% of the plant’s employees are black, none of its new owners are.
In the fiscal year which ended June 30, the South African unit had sales of roughly $12 million. Procter & Gamble had worldwide sales of $15.4 billion last year.
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