Unilever has announced it will become a single entity based in the Netherlands going forwards.
The consumer goods giant has previously operated as two legal entities, an N.V. and PLC, based both in the Netherlands and UK.
However, it now plans to move forward as a Dutch company primarily because 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.
Unilever said its 7,300 UK and 3,100 Netherlands employees would not be affected by the changes.
In a video statement, Marijn Dekkers, Chairman of Unilever, said: “The Board’s review showed that by moving to a single holding company with a single share class, Unilever would have greater strategic flexibility to undertake equity-settled acquisitions and demergers.
“And while I should stress that neither care currently planned, I hope you agree the the Board is right to improve the company’s future optionality.”
Unilever, the parent company of Dove, Lynx and Dermalogica, plans to continue operating its Food & Refreshments business from its Rotterdam base, while the Beauty & Personal Care and Home Care headquarters will be in London.
Dekkers added: “In this highly dynamic and increasingly competitive industry, Unilever must constantly evolve to ensure it is best positioned to drive its performance and create long-term shareholder value.
“Our decision to simplify the group’s structure helps us achieve this as we continue our transformation into a simpler, a more agile and a more focused business.”
