Unilever Spins Off Ice Cream Business with Amsterdam Stock Listing

Unilever will spin out its ice cream division, choosing Amsterdam for its primary listing, affecting UK stock market appeal. The demerger includes brands like Magnum and Wall's. Despite European and US secondary listings, CEO Hein Schumacher cites operational efficacy and Dutch commitments for the decision. Shares fell nearly 7%.

Unilever, the maker of Ben & Jerry's, announced that it will spin off its ice cream business and list it primarily in Amsterdam. This decision marks a setback for Britain's efforts to attract IPOs, especially as the country's finance minister has been working to enhance London's financial appeal.

The move follows Unilever's annual results and a €1.5 billion share buyback but led to a nearly 7% drop in its London-listed shares. CEO Hein Schumacher had earlier outlined a demerger strategy, including job cuts and restructuring, after years of underperformance from the company.

The ice cream business, featuring brands like Magnum and Wall's, will maintain secondary listings in London and New York with 2024 turnover recorded at €8.3 billion. Despite Britain's reforms to attract listings post-Brexit, this shift highlights ongoing challenges in competing with international financial hubs.

(With inputs from agencies.)