London or Rotterdam? Unilever still undecided
23 Feb 2018 --- British-Dutch consumer goods giant Unilever still has not officially decided on whether to keep its European headquarters in the UK or the Netherlands as part of plans to unify the business under one roof.
Speculation is mounting with many reports claiming Unilever will ditch the UK in the wake of Brexit and favor Rotterdam as the location for its headquarters.
But the potential head office consolidation is not being discussed officially. FoodIngredientsFirst approached Unilever for comment but was told the company was not disclosing any further information at the time.
However, we do understand that as of yet, the Unilever Board has not met to make the final decision on where the headquarters will be located and a meeting to decide the base for Unilever’s global operations could be on the cards in the coming weeks.
There is potential for a decision to be made and announced in March when Unilever publishes its first-quarter earnings.
“Theresa May is bracing for Unilever to choose the Netherlands over the UK,” a source is quoted as saying in the Financial Times.
Dutch prime minister Mark Rutte has been lobbying Unilever to choose the Netherlands, while UK officials have reportedly been making the case for London.
Currently, the company is co-headquartered in Unilever House, London, and in Weena, Rotterdam.
Last April Unilever announced that is was reviewing its structure in the UK and the Netherlands around the same time as the Kraft Heinz failed €143 billion approaches.
Kraft Heinz Co. withdrew its bid for Unilever two days after the approach became public amid stiff opposition from the Anglo-Dutch target to engage in discussions. Kraft Heinz blamed its withdrawn offer on early deal leaks, which it said thwarted efforts to negotiate a merger on a friendly basis.
In December, Unilever also received a binding offer from KKR to purchase its global Spreads business for €6.825 billion on a cash-free, debt-free basis. Unilever’s Spreads business includes brands such as Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv.
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