The Consumer Goods giant Unilever plans to “simplify its corporate structure” by relocating to Amsterdam was rejected by its major shareholders.
Unilever is known for producing consumer products such as AXE, DOVE and Magnum. It has two parent holding companies which are Unilever PLC and Unilever NV. The company is one of the biggest companies in the United Kingdom’s FTSE (Financial Times Stock Exchange) 100 share index that has an estimated net value of around £124 billion but will no longer be included with its plans for relocation.
The relocation would cause a lot of shareholders based in the United Kingdom to sell their shares and have made more than 50 of its biggest existing shareholders worry and therefore expressing their concerns.
Chief Investment Officer for Equities at Aviva Investors, David Cumming said that it was disappointing to see a world-class company like Unilever to depart from the United Kingdom, and has said that its shareholders would not support the company’s decision to relocate since there is a lot of downsides that come along with it. He believes that with the failed attempt of taking over by Kraft Heinz in 2017 made the company to seek protection.
While Unilever is still winning the hearts of its proposal to move-out, the company has ensured that there will be no jobs that will be affected by the process.
Unilever insists that moving the company to one single entity will propel the company to further heights and make future acquisitions to be more flexible.