The consumer goods giant, which is the UK’s third largest company, on Thursday said that it was shaking up its corporate structure. Under the changes it will operate three divisions. Its beauty and personal care division and its home care division will be based in London, while its foods and refreshment division will be based in Rotterdam.
It said that it also intends to simplify from its current structure of being two legal entities, transforming into one legal entity that will be incorporated in the Netherlands.
It said that the decision reflects the fact that the shares that are currently listed in the Netherlands account for approximately 55 per cent of the group's combined ordinary share capital, and also trade with greater liquidity than the ones listed in London.
However, the maker of Dove soap, Marmite and Ben & Jerry's ice cream, will continue to have its shares listed in the capital, as well as in Amsterdam and New York following the changes. It also said that Unilever's employment of 7,300 people in the UK and 3,100 people in the Netherlands will be unaffected by the changes.
"Unilever's board is fully committed to delivering long-term performance and sustainable value for shareholders,” said chairman Marijn Dekkers.
“The board believes the move to three divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change,” he added.
Unilever, which was formed in 1930 through a merger between Dutch margarine producer Margarine Unie and UK soap maker Lever Brothers, last year already announced that it was reviewing its dual-headed corporate structure in the aftermath of its fending off an attempted $143bn takeover from Kraft Heinz.
As one of the largest listed company's in the UK, Unilever is a major contributor to the economy.
In addition to its London headquarters, it has three global research facilities at Port Sunlight, Colworth and Leeds, as well as manufacturing sites and distribution depots all around the UK.
It has annual UK sales of around £1.8bn and many of its products – including Persil, Dove, Magnum, Flora, Marmite and Lynx – are market leaders.
In the lead up to Thursday’s announcement, Unilever had reportedly met with the governments of both the UK and the Netherlands. The Dutch Prime Minister Mark Rutte is a Unilever veteran himself.
Although the company did not specifically cite Brexit as a reason for its move in the end, the decision is expected nonetheless bruise Theresa May’s government with just a year to go until the UK is due to quit the trading bloc.
On Thursday, a government spokesman welcomed Unilever’s continued commitment and its promise to protect jobs.
"Its decision to transfer a small number of jobs to a corporate HQ in the Netherlands is part of a long-term restructuring of the company and is not connected to the UK's departure from the EU," the spokesman said.
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