Unilever is considering New York as a potential venue for a listing of its ice cream business, people with knowledge of the matter said, a move that might trigger a backlash in the unit’s home market of the Netherlands.
The company and its advisers are evaluating a range of options including a listing in the US, which is the biggest market for its ice cream brands like Ben & Jerry’s and Breyers, the people said. Amsterdam and London are also among venues being considered, according to the people, who asked not to be identified because the information is private.
Unilever could opt to float the business on a single bourse or multiple exchanges, depending on market conditions, the people said. The company is expected to weigh the various advantages and disadvantages associated with different listing venues before making a final decision. Those could include different tax implications and accounting requirements for each country, as well as previous pledges to the Dutch government.
The British company has been targeting to separate the business by the end of this year. Deliberations are ongoing and details of the potential transaction could change, the people said. A spokesperson for Unilever declined to comment.
A New York listing would be a fresh blow to European markets, as companies increasingly flock to deeper liquidity and higher valuations in the US. It would also cause waves in the Netherlands, where the government has been ratcheting up pressure on Unilever to live up to a previous commitment under former chief executive Alan Jope to list its wider food business in the country.
Unilever sealed plans to base itself in the UK in 2020, but said in a letter to the Dutch government at the time that if it ever spun off its foods and refreshment unit, it would list it in the Netherlands, provided it remained an attractive location for business. In October, Unilever said it was moving the ice cream business’ headquarters to the heart of Amsterdam’s city centre, from its previous base in Rotterdam.
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Unilever is undergoing a shakeup which includes a cost-cutting initiative that will see the company shed 7,500 jobs globally. On an October earnings call, management said the ice cream unit is on track to become a standalone company by the end of 2025. In November, Unilever said it will also exit food brands with combined sales of more than one billion euros (S$1.4 billion).
The firm last year kicked off initial discussions with buyout firms about a possible sale of the ice cream division, which could be worth as much as £15 billion (S$25.2 billion), Bloomberg News reported in July.
Shedding the unit will remove a headache for Unilever, which has had to deal with controversies over political stances taken by Ben & Jerry’s. Late last year, the independent board of Ben & Jerry’s filed a lawsuit accusing Unilever of silencing it on advocating for Palestinian rights, reigniting their multi-year public feud over the issue.
Shares of Unilever have risen about 20 per cent in the past 12 months, giving the company a market value of about £115 billion. BLOOMBERG
