Unilever plans switch to British holding company to cut complexity

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Unilever proposed combining its Dutch and British legal entities in a single holding company based in Britain on Thursday, after shareholders sank ...

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.

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.

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. The formation of the Britain-based parent, Unilever Plc, will be subject to approval from shareholders of both Unilever NV and Unilever Plc and is not expected to be a taxable event.

 

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