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Marmite maker Unilever drops London HQ | Marmite maker Unilever drops London HQ |
(35 minutes later) | |
Anglo-Dutch consumer goods giant Unilever, maker of Marmite and Dove soap has chosen Rotterdam over London for its headquarters. | |
The firm said it would move to a single legal entity in the Netherlands in an effort to become "more agile". | |
Unilever's dual-headed structure has existed since 1930, when Dutch margarine firm Unie merged with British soap maker Lever Brothers. | |
The company said the decision over its HQ was "not about Brexit". | |
However, the move is being seen as a blow to the UK government as it prepares for next year's exit from the European Union. | |
At the same time, Unilever said it would be reorganising its business into three divisions: beauty and personal care, home care, and foods and refreshment. | |
The first two divisions will have their headquarters in London, while the third will continue to be based in Rotterdam. | |
No jobs lost | |
Unilever employs 7,300 people in the UK and 3,100 in the Netherlands. No jobs will be lost by the move. | |
A government spokesperson said: "Unilever has today shown its long-term commitment to the UK by choosing to locate its two fastest-growing global business divisions in this country, safeguarding 7,300 jobs and £1bn a year of investment. | |
"As the company itself has made clear, its decision to transfer a small number of jobs to a corporate HQ in the Netherlands is part of a long-term restructuring of the company and is not connected to the UK's departure from the EU." | |
Unilever chief executive Paul Polman told the BBC's Today programme that the move to a single legal entity was being made for "technical reasons", as the bulk of its shares - 55% - were traded in the Netherlands. | |
"This is not about Brexit," he said, adding that "both countries are attractive from an investment point of view". | |
Tax change | |
The company has had talks with the governments of both countries in the run-up to its decision, which was finalised at a board meeting on Wednesday. | |
The company's shares will continue to be listed in London, Amsterdam and New York. | |
The maker of Pot Noodles and Ben & Jerry's ice cream announced a review of its dual-headed structure last year, after it foiled a $143bn takeover offer from Kraft Heinz. | |
Speculation that it would choose the Netherlands has increased in recent months, following the proposal of a tax change by Dutch Prime Minister Mark Rutte, himself a Unilever veteran, seen as benefiting Anglo-Dutch multinationals. | Speculation that it would choose the Netherlands has increased in recent months, following the proposal of a tax change by Dutch Prime Minister Mark Rutte, himself a Unilever veteran, seen as benefiting Anglo-Dutch multinationals. |
Since 1930, Unilever has operated with two parent companies - a British PLC headquartered in London and a Dutch NV based in Rotterdam. | Since 1930, Unilever has operated with two parent companies - a British PLC headquartered in London and a Dutch NV based in Rotterdam. |
Although run as one company, the distinct legal entities have different shareholders, separate stock listings and annual meetings and are subject to different laws and corporate governance requirements. | Although run as one company, the distinct legal entities have different shareholders, separate stock listings and annual meetings and are subject to different laws and corporate governance requirements. |