Unilever has announced that it will combine its dual head office operational structure in London and Rotterdam into a single entity, based in the Dutch city.
The group made the announcement in a release entitled ‘Building the Unilever of the Future’, in which it pledged to turn Unilever ‘into a simpler, more agile and more focused business’.
While the company didn’t mention Brexit in a release announcing the move, analysts had long speculated that Unilever may be planning a simplification of its corporate structure, given the impending departure of the UK from the European Union.
Corporate Structure
In terms of the new corporate structure of the group, Unilever NV and Unilever PLC will now be combined into a single legal entity in the Netherlands, which the company said ‘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’.
It said that the simplification of its head office structure will ‘provide greater flexibility for strategic portfolio change and help drive long-term performance’.
Unilever shares will, however, continue to be listed in London, Amsterdam and New York, and no jobs will be affected by the move.
Read our special report from earlier this week: U is for Unilever.
Three Divisions
As well as changing its corporate structure, Unilever also said that it was ‘evolving’ its category makeup around three divisions: Beauty & Personal Care, Home Care and Foods & Refreshment.
Both the Beauty & Personal Care Division and the Home Care Division will be located in London, which the group said secures ‘nearly £1 billion per year of continued spend in the UK’.
Its Foods & Refreshment Division will continue to be based in Rotterdam.
“Unilever’s Board is fully committed to delivering long-term performance and sustainable value for shareholders,” said Marijn Dekkers, Unilever chairman.
“The Board believes the move to three Divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change. Our decision to headquarter the Divisions in the UK and the Netherlands underscores our long-term commitment to both countries.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
