Unilever has chosen Amsterdam over London for its ice cream business’ primary listing, in a new blow to the City of London’s struggling initial public offering (IPO) market.
British multinational consumer goods company Unilever revealed that it would be demerging its ice cream business later this year.
The division will be primarily listed in Amsterdam following the spin off, with secondary listings in New York and London.
However, Unilever itself has listings on all these markets, although it is primarily listed in London as well.
Unilever’s share price dropped 6.2% on Thursday afternoon.
The company’s ice cream branch owns brands such as Ben & Jerry’s, Magnum, Breyers and Wall’s. Jean-François van Boxmeer, the current chair of Vodafone Group Plc and non-executive director of Heineken Holding N.V. has been revealed as the chair designate for the separated ice cream business.
Unilever, which is headquartered in London, also owns a vast range of other brands including, Dove, Sunsilk, Knorr, Hourglass, Vaseline, Living Proof and more.
The decision to choose Amsterdam as the primary listing for the ice cream business comes as a new blow to London’s struggling stock market, especially given UK chancellor Rachel Reeves’ ongoing efforts to bring more listings to the capital.
Jonathan Reynolds, the UK business secretary said as reported by the Financial Times: “I would have liked Unilever to have listed in the UK. We do a lot of work talking to a whole range of businesses to make sure they understand the political desire for them to come to the UK. And there is more to do.”
The company’s chief executive officer (CEO), Hein Schumacher, revealed that it had gone with Amsterdam since the ice cream branch’s senior management and headquarters were based there.
However, the ice cream division’s worldwide research and development centre will remain in the UK. The Wall’s ice cream factory, based in Gloucester, will also operate as normal.
Unilever said in the full year 2024 earnings press release on the company’s website: “The separation of Ice Cream is on track to complete by the end of 2025. We are making progress on the key workstreams, including the legal entities set up, implementing the standalone operating model and preparing the carve-out financials.
“This decision follows a full review by the Board of separation options, focused on maximising returns for shareholders, setting the Ice Cream business up for success and execution certainty by the end of 2025.”
