Mumbai: The world''s second-largest maker of food and detergents, Anglo Dutch firm Unilever Plc, may combine with Colgate-Palmolive more than eight years after speculation started that the cosmetics major may be interested in taking over all or a part of the FMCG giant.

Unilever''s personal care products include brands like Sunsilk, Pond''s, Dove, Axe, Rexona and Vaseline. New York-based Colgate makes Softsoap and Irish Spring as also its toothpaste brand Colgate.

Some analysts said Colgate-Palmolive may be interested in buying a stake or purchasing the entire company, while others said Unilever may be the possible buyer.

In India, a merger of Unilever subsidiary Hindustan Unilever (HUL) and Colgate Palmolive will create a Rs14,000 crore conglomerate which would command more than 60 per cent market share in toothpaste alone.

Both Colgate and HUL are competing in the Rs2,500 crore toothpaste segment, with Colgate controlling nearly half of the market. HUL is the market leader in personal care, fabric care and food product businesses

Unilever shares closed 2 per cent up after a rise of 4 per cent on FTSE and 2 per cent in Amsterdam amidst the rumours of takeover.

The rumoured takeover, analysts say, is positive news for Lever, considering the lacklustre performance it had for many quarters now. Colgate also gained on rumours that it would acquire a part or whole of Unilever.

Shares of Colgate gained 1.7 per cent to close at $66.89, while Unilever shares jumped 2.6 per cent to $33.98.

Unilever has a market capitalisation of $95 billion against Colgate''s $34 billion. Unilever''s annual sales are around $50 billion which is almost four times Colgate''s $13 billion.

A Unilever merger with Colgate-Palmolive would derive substantial cost synergies, especially in Latin America, where both companies have strong market positions.

Meanwhile, Dutch market regulator AFM said Fortis NV, the biggest financial company in Belgium, owned 5.1 per cent of Unilever''s Dutch equity as of 2 July. The firm''s previous stake wasn''t disclosed.

Dutch law requires shareholders to report the size of their stake in a listed company if it exceeds or falls below 5 per cent of the total or multiples of 5 per cent thereafter.

According to the AFM website, Fortis was obliged to report its holding in Unilever on July 2, a week before Groupe Danone''s offer on peer Numico. A subsequent rise in Unilever''s share price was credited to hopes for more consolidation in the sector.