Last year, Unilever, the UK-based FMCG multinational, made headlines when it announced its decision to spin off its ice-cream business, which includes popular brands like Ben & Jerry’s and Magnum. The company explained that managing an ice-cream business was significantly different from its other operations, leading to the decision to separate the business. Additionally, Unilever anticipated that this move would result in cost savings.
Currently, Unilever is exploring various listing options for its ice-cream business, which is estimated to be valued at around €15bn. One potential option, as reported by the Financial Times, is to list the business in London, where Unilever is currently listed. However, the company is also considering Amsterdam and even New York as alternative listing locations. It is worth noting that the headquarters of the ice-cream division was relocated from Rotterdam to Amsterdam last year. The final decision on the listing location is expected to be announced in March, though Unilever has chosen not to comment on the matter.
In a surprising turn of events, the UK’s Chancellor of the Exchequer, Rachel Reeves, intervened in the situation by urging Unilever to keep its ice-cream business in London. Reeves reportedly met with Unilever’s CEO, Hein Schumacher, and the head of UK and Ireland business, Marc Woodward, in September to advocate for the business to float its ice-cream division in the UK. Given that Unilever is the fourth largest company on the FTSE 100, the potential departure of its ice-cream division to Amsterdam or New York would be a significant setback for the UK. Moving the business to New York would align with a growing trend of UK companies relocating to the United States.
Overall, the decision-making process regarding the listing location for Unilever’s ice-cream business has garnered attention from various stakeholders. The outcome of this process will not only impact the company itself but also have broader implications for the UK economy. As the situation continues to unfold, it will be interesting to see how Unilever navigates this transition and what the ultimate implications will be for all parties involved.
