Unilever Makes Rotterdam Its Headquarters, In Blow To U.K.
Consumer goods giant Unilever plc (UN, ULVR.L, UL) said Thursday that it will be scrapping its London headquarters and will make Rotterdam, Netherlands its legal home.
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The move is a blow to U.K. Prime Minister Theresa May as she strives to maintain investment after the country leaves the European Union.
"The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-term performance," the company said.
The consumer goods giant said that it is changing its corporate structure. Under the changes the company 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.
Unilever said it intends to simplify from two legal entities, N.V. and PLC, into a single legal entity incorporated in the Netherlands. This reflects the fact that the shares in N.V. account for approximately 55% of the group's combined ordinary share capital , and trade with greater liquidity than PLC shares. Unilever will continue to be listed in London, Amsterdam and New York.
Upon completion, the N.V. preference shares will be cancelled, and it is intended to close the N.V. Trust Office and terminate the related depositary receipt structure. Unilever will also continue to apply both the UK and Dutch corporate governance codes.
Unilever said its employment of 7,300 people in the UK and 3,100 people in the Netherlands will be unaffected by the changes announced today.
The proposals are subject to approval of the British and Dutch entities' shareholders, with implementation expected toward the end of this year, the company said. (dpa)
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