Unilever has given up on a plan to move its headquarters out of the United Kingdom after some big investors objected.
The global consumer goods company said Friday that the planned change "has not received support from a significant group of shareholders."
Unilever, which owns brands including Dove, Lipton and Ben & Jerry's, had announced in March that it would use Rotterdam as its sole legal home as part of an effort to simplify its corporate structure.
That announcement — by one of the United Kingdom's largest companies — was seen as a setback for the country as it prepares to leave the European Union.
Unilever has operated for decades with dual headquarters in London and Rotterdam.
It had argued that consolidating in the Dutch city would simplify its structure and give it more flexibility to buy or sell brands. Shares would have been listed in New York, Amsterdam and London.
The move would have led stock market operators to designate Unilever a Dutch company and drop it from London's FTSE 100 index. Funds that invest in shares that make up the benchmark index were concerned they would have to dump their Unilever holdings as a result.
Unilever shares listed in London dropped 0.7% following Friday's announcement.
"We expect a mixed reaction today: some [UK] shareholders will view the withdrawal positively as the stock will maintain its inclusion in the FTSE 100 index, but others might be disappointed," noted analysts at UBS.
Unilever needed the support of 75% of voting UK shareholders at a meeting later this month to proceed with the structural overhaul.
Abandoning the plan is a blow for Unilever managers including CEO Paul Polman, who initiated the structural review last year after brushing off a takeover attempt from Kraft Heinz (KHC).
Unilever has over 400 brands in its portfolio and 161,000 employees. It says that 2.5 billion people use its products each day.
Latest Stories
-
Vice Chancellors Ghana demands review of retirement age for university lecturers from 60 to 70-yrs
2 minutes -
Otumfuo Osei Tutu II Foundation marks 25 years of transforming lives in deprived communities
7 minutes -
Ghana’s horticultural sector: A blooming force for inclusive growth and a 24-Hour Economy
10 minutes -
HOPSA 2001 receives support from Ibrahim Mahama for Sustainability Project
16 minutes -
Mamponghene, Daasebre Osei Bonsu II passes on at 86; Traditional Council informs Asantehene
23 minutes -
Church musicians should be assertive in negotiating for better conditions – Pastor Edwin Dadson
28 minutes -
Kofi Adams congratulates Kurt Okraku on CAF appointment as 2nd Vice President
39 minutes -
Forgive us for our lapses; we’ll do better next time – Bawumia to Ghanaians
39 minutes -
You have spoken well, and we have heard you – Bawumia to Ghanaians
47 minutes -
Ataa Ayi’s mechanic appeals 35-year sentence after decades in jail
49 minutes -
Bawumia deserves praise for inviting us to join his thank you tour – Kojo Nsafoa
52 minutes -
Reggie Rockstone reflects on four decades of his music journey
54 minutes -
Deloitte UKGCC Webinar: Investment experts urge start-ups to prioritise sustainability of businesses over fundraising
58 minutes -
Joe Mettle takes 2025 Praise Reloaded to El Wak Sports Stadium
1 hour -
4th West Africa Pharma Exhibition to spotlight AI, big data, and telemedicine in Ghana
2 hours