Unilever’s Ice Cream Spin-Off Delayed by US Government Shutdown

Unilever PLC (LON: ULVR) has announced a revision to the timetable for the demerger of its Magnum Ice Cream Company N.V., citing the ongoing US federal government shutdown as the primary cause.

The delay impacts the planned listing and trading of the new entity's shares on the New York Stock Exchange (NYSE).

Preparatory work for the demerger is reportedly progressing smoothly, and Unilever reaffirms its commitment to completing the transaction in 2025.

The company said that a revised timetable will be released as soon as practically possible, contingent on the resolution of the US government shutdown.

The US Securities and Exchange Commission (SEC) is currently unable to declare effective the US registration statement required for the Magnum Ice Cream Company N.V. shares.

The general meeting of Unilever shareholders, scheduled for today at 8:00 am, will proceed as planned. The purpose of the meeting is to vote on the proposed consolidation of Unilever's share capital in connection with the demerger.

However, the implementation timeline for the share consolidation, should it be approved, will also be subject to revision.

The spin-off of the ice cream business is intended to allow Unilever to focus on its core branded consumer goods portfolio, while the Magnum Ice Cream Company can pursue its own growth strategy as a separate entity.

The delay serves as a reminder of the external factors that can influence corporate actions, even for multinational corporations like Unilever. The US government shutdown, while seemingly unrelated to the company's core business, has a direct impact on its ability to execute its strategic objectives.