UNILEVER PLANS TO SWITCH TO A UK HOLDING FIRM DUE TO BREXIT

Unilever proposed combining its Dutch and British legal entities in a single holding company based in Britain on Thursday after shareholders sank an earlier plan to move the global consumer goods group’s headquarters to the Netherlands, Siddharth Cavale wrote for Reuters on June 11, 2020.

The proposed unification, which would unwind a structure that has been in place since 1930, would give Dove soap maker Unilever more flexibility for mergers and acquisitions and reduce complexity, the Anglo-Dutch company said in a statement.

The proposal, which resulted from an 18-month review, was accelerated in part by Unilever’s decision to demerge its tea business this year. Unilever said achieving that demerger would be significantly more complex under its “dual headed” structure. Unilever said the merger will not impact on the listing of Unilever NV on the Amsterdam Stock Exchange or of Unilever Plc on the London Stock Exchange.

Jefferies analysts said the plan is the reverse of Unilever’s attempt in 2018 to have a prime listing in the Netherlands. Unilever has a new Chairman and CEO since the failure of that proposal in the face of a shareholder revolt. Unilever said the new plan will not change its operations, locations, activities or staffing in Britain or the Netherlands.