Consumer goods giant Unilever has agreed to sell its stake in its Myanmar joint venture, but the exit will not be quick. The company told Reuters it will sell its shares in Unilever EAC Myanmar Company Limited to Centig Holding Company Limited, an affiliate of its local partner, Europe and Asia Commercial Company Limited. The price was not disclosed, and the deal is not expected to close until 2027, pending approvals.
The long gap between signing and closing is a stark reminder of how difficult it has become for multinational companies to operate, change ownership, or move money in and out of Myanmar since the 2021 military takeover and the ensuing conflict. What might be a routine corporate transaction elsewhere can become a drawn-out process fraught with regulatory hurdles.
Why the long wait?
In many countries, selling a business stake can take months, not years. But in Myanmar, the approvals process is unpredictable. The military-backed authorities have said they want to attract foreign investment, but investors are more focused on whether the rules are clear, consistent, and enforceable. When they are not, even simple deals can stall.
This particular transaction is structured as a sale to an affiliate of the existing local partner. That is a common approach in high-risk markets: the buyer already has licenses, relationships, and operational continuity, which can smooth the transition. But it also means the seller is often reliant on the goodwill and cooperation of the very partner it is trying to leave.
The extended timeline also reflects broader concerns about capital controls and the ability to repatriate funds. If a company cannot easily move money out of a country, the value of any investment there drops. Investors factor this in as a “country-risk discount,” which raises the bar for new projects and lowers valuations for existing ones.
What it means for investors
For Unilever shareholders, this is a small part of a global portfolio. The company is far better known for its cost-cutting and restructuring plans than for its Myanmar operations. Still, the slow exit is a useful case study in how capital can become trapped.
When a deal takes years to close, the seller’s money is effectively locked up. That reduces the return on investment and increases the risk that conditions change before the deal is done. It also signals to other multinationals that entering Myanmar—or staying there—carries a high administrative burden.
The economic backdrop reinforces the caution. The World Bank has cut its forecast for Myanmar’s real economic growth to 2.0% for fiscal year 2026/27, which began in April. That is weak growth for a developing economy, and it reflects the ongoing conflict, disrupted supply chains, and a business environment that many foreign firms find increasingly unworkable.
Broader implications for emerging markets
This is not just a Myanmar story. It is a reminder that in many emerging and frontier markets, the biggest risk is not finding a buyer—it is getting the deal approved and the money out. Countries with unpredictable regulatory systems tend to see less foreign direct investment, which in turn hampers growth and job creation.
Investors who are considering exposure to such markets—whether through stocks, bonds, or direct investment—should weigh the potential returns against the risk of capital being tied up for years. The experience of Unilever in Myanmar is a concrete example of how that risk plays out.
For now, the deal is signed, but the exit is far from complete. Investors will be watching to see whether the approvals come through on schedule, or whether the 2027 target slips further. Either way, the episode underscores a simple truth: in high-risk markets, patience is not just a virtue—it is a necessity.
