Audio By Carbonatix
Unilever has given up on a plan to move its headquarters out of the United Kingdom after some big investors objected.
The global consumer goods company said Friday that the planned change "has not received support from a significant group of shareholders."
Unilever, which owns brands including Dove, Lipton and Ben & Jerry's, had announced in March that it would use Rotterdam as its sole legal home as part of an effort to simplify its corporate structure.
That announcement — by one of the United Kingdom's largest companies — was seen as a setback for the country as it prepares to leave the European Union.
Unilever has operated for decades with dual headquarters in London and Rotterdam.
It had argued that consolidating in the Dutch city would simplify its structure and give it more flexibility to buy or sell brands. Shares would have been listed in New York, Amsterdam and London.
The move would have led stock market operators to designate Unilever a Dutch company and drop it from London's FTSE 100 index. Funds that invest in shares that make up the benchmark index were concerned they would have to dump their Unilever holdings as a result.
Unilever shares listed in London dropped 0.7% following Friday's announcement.
"We expect a mixed reaction today: some [UK] shareholders will view the withdrawal positively as the stock will maintain its inclusion in the FTSE 100 index, but others might be disappointed," noted analysts at UBS.
Unilever needed the support of 75% of voting UK shareholders at a meeting later this month to proceed with the structural overhaul.
Abandoning the plan is a blow for Unilever managers including CEO Paul Polman, who initiated the structural review last year after brushing off a takeover attempt from Kraft Heinz (KHC).
Unilever has over 400 brands in its portfolio and 161,000 employees. It says that 2.5 billion people use its products each day.
Latest Stories
-
CRC opted for broader reforms over abolishing ex-gratia – Charlotte Osei
28 minutes -
Mahama’s record shows four-year presidential term is sufficient – Inusah Fuseini
35 minutes -
Four-year term enough for accountability – Inusah Fuseini
42 minutes -
CRC Proposals: We were very mindful not to create problems while solving existing ones – Charlotte Osei
51 minutes -
Ebo Noah’s ‘faith’ or Climate Change: Rains on Christmas eve and day in Ghana?
1 hour -
Dr Seidu Jasaw commissions CHPS facilities in Chaggu-Paala and Tuosa communities
1 hour -
Charlotte Osei describes CRC work as “a privilege of a lifetime”
2 hours -
Ablakwa inaugurates SMART classrooms for STEM education
2 hours -
Livestream: Newsfile discusses Constitution review report and AG’s ORAL drive
2 hours -
Michael Adangba Legacy Music Festival pulls huge crowd for maiden edition
3 hours -
MTN spreads Christmas cheer to newborns in Takoradi hospitals
3 hours -
Kumawu MP celebrates Christmas with drivers and riders
3 hours -
DeThompsonDDT earns six major nominations at 2025 Western Music Awards
4 hours -
Kumawu MP shares Christmas with aged, widows in constituency
4 hours -
Even Dangote cannot escape katanomics
5 hours
