Unilever has announced that its ice cream division will have its primary stock listing in Amsterdam. This decision comes as another hit to London’s already struggling initial public offering (IPO) market. The spin-off is planned for later this year, with secondary listings in New York and London.

The UK government has been working hard to make London more attractive for major listings. Officials expressed disappointment in Unilever’s move, seeing it as another sign of London losing its competitive edge in global finance.

Why Amsterdam?

Unilever, a multinational consumer goods company, is based in London. Its brand portfolio includes household names like Dove, Sunsilk, Knorr, and Vaseline. However, the ice cream division’s headquarters and senior management are located in Amsterdam. CEO Hein Schumacher explained that this played a big role in the decision.

Key operations in the UK, such as the Wall’s factory in Gloucester and a global research and development center, will remain. Still, choosing Amsterdam for the primary listing signals a shift in how companies see London’s role in global finance.

The company’s board said that the decision came after a detailed review. They believe the move will help maximize value for shareholders. In its 2024 earnings report, Unilever confirmed that the spin-off is on track and should be completed by the end of 2025.

What This Means for London’s IPO Market

London has been struggling to attract big IPOs in recent years. The UK’s departure from the European Union (Brexit) led many companies to reconsider their financial strategies. Regulatory changes and concerns about market depth have made other financial centers more appealing.

Several companies have chosen to list in places like Amsterdam, New York, or Paris instead of London. Arm Holdings, a major chip designer, went public in New York rather than the UK. CRH, a construction giant, also moved its primary listing to the U.S. These decisions show a growing trend of businesses looking beyond London for financial opportunities.

Financial Performance and Strategy

Unilever’s 2024 financial results were strong. The company reported a 4.2% rise in underlying sales, driven by a 2.9% increase in volume. Turnover grew by 1.9%, reaching €60.8 billion. The underlying operating margin improved by 170 basis points to 18.4%, while the gross margin increased by 280 basis points.

CEO Hein Schumacher highlighted Unilever’s focus on high-value brands. The company is investing in premium brands like K18 and Minimalist while selling off smaller local food brands like Unox and Conimex. Schumacher explained, “We are focusing our foods business on cooking aids and condiments.”

Restructuring in Key Markets

Unilever is also adjusting its operations in different regions. The company is making major changes in Indonesia and China. In Indonesia, it is restructuring to improve performance. In China, where the market is slowing, Unilever is adapting its strategy to meet new challenges. Schumacher expects these changes to start showing results in the second half of 2025.

Market analysts believe that Unilever’s strategic shifts could help it stay competitive. However, there is concern about how these changes will impact long-term growth. Some experts think that the company’s restructuring efforts could take longer to deliver results.

Leadership and Future Plans

Jean-François van Boxmeer has been named chair designate of the new ice cream business. He currently serves as chair of Vodafone Group Plc and is a non-executive director at Heineken Holding N.V. His leadership will be key in guiding the new entity as it moves toward becoming an independent company.

Unilever’s ice cream division includes well-known brands such as Ben & Jerry’s, Magnum, Breyers, and Wall’s. These brands have strong global recognition and continue to perform well in their markets. The spin-off is expected to allow the ice cream business to focus more on innovation and growth.

A Global Shift in Financial Power

The move to Amsterdam is another example of Europe’s changing financial landscape. The Dutch capital has been gaining ground as a financial hub, attracting companies that once considered London their first choice. With Brexit creating uncertainty, many businesses have opted for cities within the European Union to maintain easy access to European markets.

The decision also highlights the growing influence of U.S. financial markets. Many large companies now see New York as a more attractive location for raising capital. With a deep and liquid market, the U.S. remains the world’s top choice for major listings.

Unilever’s choice of Amsterdam over London adds to concerns about the UK’s ability to attract major IPOs. While the company maintains a strong presence in the UK, this move underscores the challenges London faces in keeping its financial sector competitive.

As global markets shift, the UK government may need to take further steps to make London a more appealing place for businesses. Otherwise, more companies could follow Unilever’s lead, choosing to list elsewhere.

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