London Stock Market Hit as Unilever Picks Amsterdam for Ice-Cream Listing
Synopsis
The London Stock Exchange has been hit by another major corporate decision after Unilever announced it will list its ice-cream business in Amsterdam. While Unilever will maintain secondary listings in London and New York,…
The London Stock Exchange has been hit by another major corporate decision after Unilever announced it will list its ice-cream business in Amsterdam. While Unilever will maintain secondary listings in London and New York, its split-off ice-cream division will be headquartered, incorporated, and primarily traded in the Netherlands.
A Strategic Move, Not a UK Snub
Unilever’s CEO, Hein Schumacher, addressed concerns that the move signals declining confidence in the UK, emphasising, “This decision is not a snub to London or the UK.” Instead, he explained that the Netherlands’ existing infrastructure—featuring the main headquarters, brand intellectual property, and manufacturing facilities—tipped the scales in favour of Amsterdam.
Schumacher further asserted Unilever’s commitment to the UK, highlighting planned investments in the coming years. He also praised the UK government’s indefinite postponement of “not for EU” meat and dairy labelling requirements, which he credited with safeguarding jobs at its Gloucester ice-cream factory.
However, London's reputation as a premier financial hub has encountered further challenges, as Unilever Ice-Cream adds another name to the growing list of corporations opting for foreign listings.
A Growing Trend of Corporate Relocations
Unilever joins a raft of businesses exploring international markets for primary listings. Major corporations such as the Flutter Entertainment group (owner of Paddy Power) and the travel titan Tui have traded their London listings for platforms like New York and Frankfurt. Meanwhile, Ashtead Group—worth £27bn—also unveiled plans in late 2024 to relocate its primary listing to New York.
Initial public offerings (IPOs) have similarly bypassed London in favour of Wall Street. Notable examples include UK-based chip designer Arm and fintech giant Klarna.
Unilever’s decision comes amid broader concerns about the competitiveness of the London Stock Exchange, raising questions about its future relevance in a globalised economy.
The Impact on Unilever and Shareholder Value
Unilever justified its decision by asserting that Amsterdam offered the best opportunities to maximise shareholder returns. According to the company, this was the “result of a full review” aimed at determining how best to establish the ice-cream division for long-term success.
This spin-off separates a division that generates substantial revenue and houses five of the world’s top 10 ice-cream brands, including Magnum, Ben & Jerry’s, and Wall’s. Other popular labels under the division include Cornetto, Viennetta, Carte d’Or, and US-favourite Breyers.
Nevertheless, the announcement led to immediate turbulence for Unilever's shares, which plummeted 7% on the FTSE 100—marking its worst performance in three years. The fall reflected broader market disappointment, compounded by the company’s projections for slower sales growth of 3% to 5% in early 2025. The actual sales growth for the previous year, at 4.2%, fell slightly short of forecasts.
The Cost of Inflation
Schumacher also tackled questions surrounding price increases across the food industry. He cited rising commodity costs—including palm oil, cocoa, and dairy—as contributing factors. However, Schumacher was quick to reassure consumers, stating the company would be cautious with price increases and would offer affordable solutions wherever possible. As an example, he pointed to Magnum Bon Bons, bite-sized ice-cream treats launched in 2024, designed to curb cost pressures for buyers.
Beyond pricing challenges, Schumacher acknowledged the role of inflationary shifts in national insurance contributions and legal minimum wage increases. While these measures contribute to higher supplier costs, he described them as part of a “more normalised” inflationary landscape. Unilever’s ice-cream division, including brands like Magnum, continues to innovate in response to these economic pressures, ensuring consumers still have access to premium yet affordable options.
Unilever’s Restructuring and Organisational Shift
The spin-off of the ice-cream unit forms part of a broader restructuring strategy under Schumacher’s leadership. Unilever first announced plans to separate the business in March 2024, with the intention of completing the move by the end of 2025.
The company is significantly downsizing its global workforce, cutting 7,500 positions, and has already implemented more than half of these reductions. Once the separation is complete, Unilever will operate across four distinct divisions: beauty and wellbeing, personal care, home care, and nutrition.
Vodafone Chair, Jean-François van Boxmeer, has taken on the role of chair for the separated ice-cream business, becoming a critical figure in its leadership.
Implications for the London Stock Exchange
Unilever’s relocation decision represents yet another challenge for the London Stock Exchange, particularly as Amsterdam increasingly positions itself as a competitive alternative.
Amsterdam’s growing appeal for corporate giants raises concerns about London’s ability to attract and retain high-profile clients. This trend also adds pressure on UK financial regulators to maintain policies that make London an attractive hub for listings.
For now, Unilever’s departure not only signifies a redirection of focus but may also serve as a catalyst for further introspection into London's place in the global market hierarchy.
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