By Rory Gallivan

LONDON -- Anglo-Dutch consumer goods giant Unilever PLC on Thursday announced plans to exit its spreads division, combine two of its main business units and boost shareholder returns with a higher dividend and share buyback program.

The moves, the result of a strategic review, come as Chief Executive Paul Polman looks to appease investors after rejecting a $143 billion takeover offer from Kraft Heinz Co.

The company behind Hellmann's mayonnaise and Dove soap said the future of its spreads business was now "outside the group" and that it would be sold or demerged.

It also said it would combine its foods and refreshment units into one organization to boost growth and cut costs. Overall, Unilever said various initiatives would allow it to increase cost savings from EUR4 billion to EUR6 billion.

Unilever also announced it would launch a EUR5 billion share buyback program this year and raise its dividend by 12%.

Write to Rory Gallivan at rory.gallivan@wsj.com

(END) Dow Jones Newswires

April 06, 2017 02:48 ET (06:48 GMT)

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