On February 13, Unilever, the parent company of Ben & Jerry's, announced plans to spin out its ice cream business. The primary listing will be in Amsterdam, with secondary listings in London and New York, marking a potential setback for British finance minister Rachel Reeves.
Unilever disclosed the listing structure along with its annual results and a 1.5-billion-euro ($1.6 billion) share buyback. The revelation led to a nearly 7% drop in the company's shares in early London trading, representing an 8.5 billion-pound loss in market value.
CEO Hein Schumacher's strategy for cost reduction included demerging the underperforming ice cream division and streamlining operations, which included job cuts. The ice cream segment, known for brands like Magnum and Wall's, achieved a turnover of 8.3 billion euros ($8.6 billion) in 2024.
Unilever confirmed that the ice cream unit will be listed on all three stock exchanges, with Amsterdam chosen as the primary listing due to its headquarters being based there. The decision to favor Amsterdam over London is likely disappointing for Reeves, who had discussions with Unilever about investment opportunities in the UK.
The move was praised by the Dutch Minister of Economic Affairs, Dirk Beljaarts, who highlighted Unilever's confidence in the Netherlands. This decision aligns with commitments Unilever made to the Dutch government in 2020 regarding any spin-off plans for its food and refreshment businesses.
The choice of Amsterdam as the primary listing location has been a strategic one for Unilever. Despite the initial negative market reaction, Unilever remains optimistic about its future performance, aiming for a solid underlying sales growth for the year ahead.