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Unilever scraps Dutch relocation plan | Unilever scraps Dutch relocation plan |
(35 minutes later) | |
Unilever, which makes Marmite and Dove soap, has scrapped its plan to move its headquarters to the Netherlands after growing criticism from investors. | |
In March, the company said it had chosen Rotterdam over London for its headquarters as part of a move to simplify its corporate structure. | |
But investors said the move could force UK shareholders to sell their shares. | |
Unilever said it recognised "the proposal has not received support from a significant group of shareholders". | |
However, chairman Marijn Dekkers said that the board continued to believe that simplifying Unilever's structure was in the firm's best interests. | |
"The board will now consider its next steps and will continue to engage with our shareholders," the firm said in a statement. | "The board will now consider its next steps and will continue to engage with our shareholders," the firm said in a statement. |
Sell-off fears | |
Unilever's current dual-headed Anglo-Dutch structure has existed since 1930, when Dutch margarine firm Unie merged with British soap maker Lever Brothers. | |
It is one of the biggest firms in the UK's FTSE 100 share index, valued at about £124bn. | |
The company - which also makes Pot Noodle and Ben & Jerry's ice cream - will now keep its listing on the London Stock Exchange, a spokeswoman said. | |
Under UK rules it would not have been eligible to be a member of the FTSE 100 had the proposed change gone through. | |
This had concerned shareholders, who were worried this could spark a sell-off and drive down the share price. | |
Last month, Aviva Investors told the BBC the move could force UK shareholders to sell their shares and offered "no upside". |