Unilever PLC (LON:ULVR) has revealed it will scrap its London corporate headquarters and make Rotterdam in the Netherlands its sole legal home in another Brexit blow for prime minister Theresa May.
Last year, the FTSE 100-listed firm - Britain’s third-biggest company - announced a review of its Anglo-Dutch structure after rebuffing a US$143bn takeover offer from US firm Kraft Heinz Co (NASDAQ:KHC).
READ: Unilever to sell margarine and spreads business to private equity firm KKR
In a statement today, the consumer goods giant said it would divide its business into three divisions with two - Beauty & Personal Care and Home Care - headquartered in London and one - Foods & Refreshment - in Rotterdam.
The firm said its 7,300 staff in the UK will be unaffected and it will continue to be listed in London, Amsterdam and New York.
The Marmite spread-to-Dove soap group said the move into a single legal entity incorporated in the Netherlands reflects the fact that the NV shares account for approximately 55% of the group's combined ordinary share capital and trade with greater liquidity than PLC shares.
A "simpler, more agile and more focused company"
Marijn Dekkers, Unilever’s chairman commented: "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.
“The changes announced today also further strengthen Unilever's corporate governance, creating for the first time in our history a 'one share, one vote' principle for all our shareholders."
In a note to clients, analysts at Liberum Capital said; “These moves will not change the economic situation for shareholders and appear to take a respectful approach to both the UK and the Netherlands where the group has a long and rich history and we expect most shareholders will welcome the new structure.”
Liberum repeated a ‘hold’ rating and 3,960p price target on Unilever, shares in which in afternoon trading were down 2% at 3,744p.
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