Unilever has opted to base the primary listing of its newly separated ice-cream business in Amsterdam. This decision comes after an extensive review of separation options by the board, which focused on maximizing shareholder returns and ensuring a successful launch by the end of 2025. While the business will also be listed in London and New York, it will be incorporated, headquartered, and primarily traded in the Netherlands. The company stressed that this move is driven by financial and logistical advantages rather than any intent to marginalize the UK market.
Market Reaction and Global Trends
The decision has sent ripples through the London stock market, with Unilever’s shares dropping 7% in early trading—one of its worst trading days on the FTSE 100 in three years. This development is part of a broader trend of companies relocating their primary listings away from London to other financial hubs such as New York, Frankfurt, and now Amsterdam. Recent examples include the moves by Flutter, Tui, Ashtead Group, and even high-profile IPOs like that of the chip designer Arm, which chose Wall Street over London.
Operational Advantages and Restructuring Plans
The ice-cream division, which includes globally recognized brands such as Wall’s, Magnum, Ben & Jerry’s, Cornetto, Viennetta, Carte d’Or, and Breyers, will benefit from being based in the Netherlands, where its main headquarters, manufacturing facilities, and brand intellectual property are already established. This move is part of a major restructuring programme unveiled in March 2024, which also involves spinning off the ice-cream business and cutting 7,500 jobs across Unilever’s global operations. The separation leaves Unilever with four core divisions: beauty and wellbeing, personal care, home care, and nutrition. Jean-François van Boxmeer, the former Vodafone chair, has been appointed to lead the newly independent ice-cream business.
Denial of a UK Snub and Future Outlook
CEO Hein Schumacher has emphatically denied that the decision to list primarily in Amsterdam is a snub to the UK. He highlighted that the move is solely about saving costs for shareholders, given the existing operational footprint in the Netherlands. Schumacher also reiterated Unilever’s commitment to the UK, pointing out that recent government decisions have helped safeguard jobs at its Gloucester ice-cream factory. Despite rising commodity costs, the company plans to manage pricing carefully to avoid widespread increases for consumers. The strategic listing is set to underpin a slower yet steady start to 2025, with underlying sales growth expected to be between 3% and 5%.
