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Unilever cancels controversial UK exit plan

By Sharon Marris, business reporter
Anglo-Dutch consumer goods giant Unilever has cancelled plans to move its main headquarters from London to Rotterdam.
The Marmite-maker presently has two parent holding companies: Unilever plc, whose shares are listed in London and New York; and Unilever NV, which is based in Rotterdam and whose shares are listed in Amsterdam and New York.Under the proposals, shares of Unilever plc would have been replaced with one new share in Unilever NV, while the two parent holding companies would be replaced simply by Netherlands-based Unilever NV.After resistance from shareholders, however, the company will instead retain both its headquarters in the UK and the Netherlands.Sky News City editor Mark Kleinman described the decision as a "humiliating climbdown for the board of Unilever but in many respects it's good news for UK plc".

[img]https://e3.365dm.com/17/01/512x512/4d3cd10df42722d269aa305f969825cc71c97fa2340d6619dbcd5fcb69ecaaf9_3878330.jpg" alt="Why did Unilever's plan upset investors[/img]

Why did Unilever's plan upset investors?
The consumer goods giant wanted to "simplify" its "dual-headed legal structure"

When the plan was announced it landed a major blow to the UK government's effort to promote Britain as a centre for business post-Brexit.But Unilever has always insisted the move to focus on Rotterdam was "nothing to do with Brexit".In a statement, Unilever said it had "received widespread support for the principle behind simplification."However, we recognise that the proposal has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw," it added.
Unilever cancels controversial UK exit plan

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September: David Cumming, chief investment officer for equities at Aviva Investors which holds a 1.4% stake in Unilever
Among those who had shown their disapproval of the plan were Royal London, Columbia Threadneedle, Legal & General Investment Management, Aviva Investors, Lindsell Train, M&G Investments and Brewin Dolphin.
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