Demerger Back on Track After Months of Delays
Unilever is finally moving ahead with the long-planned separation of its ice cream division. The new company will operate as The Magnum Ice Cream Company. The process had been delayed for months due to the U.S. government shutdown, but the company confirmed that the demerger will now take place this Saturday.
New Company to Begin Trading on December 8
Unilever says shares of the new business will start trading on Monday, December 8. Listings will appear in Amsterdam, London, and New York. This is a key step in Unilever’s plan to streamline operations and focus more strongly on its core brands.
How the U.S. Shutdown Slowed the Process
The U.S. shutdown — the longest in history, running from October 1 to November 12 — caused major disruptions. Several federal agencies, including the SEC, were left unable to approve the registration for the new company’s shares. This delay pushed back Unilever’s original mid-November target.
In October, Unilever warned investors that the SEC could not “declare effective” the new registration. Even so, the company said it remained committed to completing the separation in 2025. The ice cream division includes well-known brands such as Ben & Jerry’s, Cornetto, and Magnum, and it will have its primary listing in Amsterdam.
Regulatory Approval Finally Granted
Unilever confirmed on Friday that the U.S. registration became effective on December 4. This approval removes the biggest obstacle in the process. The company, which owns major brands like Dove, Axe, and Knorr, recently reported a small dip in third-quarter sales, although results still beat expectations.
A Major Part of Unilever’s Wider Strategy
The demerger is part of a broader restructuring plan. Investors — including activist fund Trian, led by Nelson Peltz — have pressured the company to improve performance. In response, Unilever is focusing on 30 priority brands and launching a major cost-cutting effort. This includes eliminating 7,500 jobs, or about 6% of its workforce, to boost margins.
Market Reaction
Unilever’s share price remained steady on Friday morning. On the London Stock Exchange, the stock traded at 4,429 pence shortly after markets opened.
