Unilever has snubbed London and chosen Amsterdam for the main stock market listing of its ice-cream business. In a bruising setback for the Chancellor, the consumer goods giant said the Euronext exchange in the Netherlands has won the battle for the ‘primary’ listing of the £13billion division that is behind brands including Magnum (advertised right by model Kendall Jenner), Ben & Jerry’s and Cornetto.
It will have ‘secondary’ listings in London and New York. The Treasury tried to put a positive spin on the decision, insisting this was a ‘vote of confidence’ in the UK. But Business Secretary Jonathan Reynolds voiced his disappointment and the Tories accused Labour of crushing business confidence with its downbeat rhetoric and tax-raising Budget. Rachel Reeves was eager to win the fight for the Unilever ice cream business having seen other companies including Arm, Flutter and Ashtead head to rival exchanges.
Going Dutch: Unilever said the Euronext exchange has won the battle for the ‘primary’ listing of its £13bn ice cream division behind brands including Magnum, Ben & Jerry’s and Cornetto. But the battle between the London, Amsterdam and New York exchanges ended in disappointment for the UK, where Marmite and Hellmann’s owner Unilever has its main listing. Ministers and City executives are now under mounting pressure to win the listings of other companies considering life on the stock market, including Shein, Waterstones, Boots and De Beers.
Unilever boss Hein Schumacher said there has been a ‘very thorough review’ which included ‘very constructive’ discussions with UK ministers. ‘This is not a snub to London or the UK,’ he insisted, saying there were ‘multiple factors for the Dutch option’ given the division’s senior management and intellectual property are already based in the Netherlands. He referred to assurances Unilever gave The Hague four years ago that it would list its foods and refreshment division in the Netherlands if it was separated.
The Dutchman said he was committed to investment in the UK, such as an ice cream innovation site in Colworth, near Bedford, and a factory in Gloucester. ‘We’re very committed to the success of the UK,’ he added. Vodafone chairman Jean-Francois van Boxmeer has been appointed to chair the ice-cream unit, which will have its headquarters in Amsterdam. Unilever said it was ‘on track’ to complete the demerger by the end of 2025.
The Government was mocked over its reaction to the Unilever decision yesterday. Business Secretary Jonathan Reynolds admitted: ‘I would have liked Unilever to have listed in the UK.’. And he said ‘there is more to do’ to win ‘significant listings’. But just a few hours later, the Treasury claimed the decision was ‘a vote of confidence’ in UK markets, despite being pipped by Amsterdam. Tory business spokesperson Andrew Griffith said: ‘The Government’s line is a mess. No one in the City of London should be content with second place.
‘This Government’s approach to business means listings – just like other wealth creators – are voting with their feet. Business sentiment in the UK is colder than an ice cream “chiller”, with our own ministers talking down the economy.’. Unilever unveiled its plans as it posted sales of £50.6billion for 2024, which was a 4.2 per cent rise from the year before. Higher sales were driven by the group’s ‘power brands’, such as Dove and Comfort.
