Unilever has announced its decision to demerge its ice cream business, selecting Amsterdam as the primary listing venue while London and New York will serve as secondary listings. The move is expected to impact the UK’s financial market and listing reforms, despite the company’s headquarters being in the Netherlands.
The consumer goods giant shared details of the listing structure alongside its annual results and a €1.5 billion ($1.57 billion) share buyback. Following the announcement, Unilever’s shares fell by 5% in early trading in London, making it the second-biggest loser on the FTSE 100.
CEO Hein Schumacher has been implementing cost-cutting measures since last year, including the separation of the ice cream division and job reductions, in an effort to improve company performance after years of underperformance.
The ice cream business, which includes well-known brands such as Magnum and Wall’s, generated a turnover of €8.3 billion ($8.62 billion) in 2024. Unilever confirmed that while the business will be listed on three stock exchanges, Amsterdam will serve as the primary listing due to its status as the company’s headquarters.
The decision is seen as a setback for British finance minister Rachel Reeves, who had been engaging with Unilever to discuss the listing. UK officials had introduced listing reforms last year to enhance London’s competitiveness post-Brexit, but the impact of these changes remains uncertain as companies continue to favor other markets.
The Netherlands, however, has benefited from Unilever’s move. Dutch economic affairs minister Dirk Beljaarts emphasized that the decision reflects Unilever’s confidence in the country and highlights the competitiveness of its business environment.
Unilever’s decision aligns with broader trends in the corporate world, where businesses seek favorable listing environments. In December, FTSE 100 company Ashtead Group announced plans to shift its listing to New York, highlighting a preference for markets that offer higher valuations.
Unilever stated that the demerger decision followed a comprehensive review by the Board, with analysts from Barclays suggesting that a demerger was the most likely outcome due to the strong market performance of standalone consumer brands. Comparisons have been drawn to Haleon, a consumer health firm that separated from GSK in 2022 and has since increased its market value by approximately £5 billion ($6.3 billion).
Some industry analysts had favored a full sale or a joint US/UK listing for Unilever’s ice cream business, as this would reduce the risk of investor pullback. However, Unilever proceeded with its chosen structure, appointing Jean-Francois van Boxmeer as chair designate for the new standalone ice cream entity.
In its financial report, Unilever revealed fourth-quarter underlying sales growth of 4%, slightly below analysts’ forecasts. The company anticipates a slow start to 2025 due to subdued market growth but maintains its annual growth target of 3% to 5%.
Schumacher emphasized that the company’s productivity program, introduced in March, is progressing ahead of schedule. Unilever continues to focus on efficiency and restructuring to enhance shareholder value in the evolving market landscape.