UNA Unilever PLC

By Adam Clark 

Unilever PLC on Friday withdrew its proposal to consolidate its separate Dutch and British operating companies, bowing to investor opposition over a controversial plan that would have ended its status as a London blue chip.

Under the plan, the consumer-goods giant would have ended its dual-listed structure, whereby it splits its headquarters between London and Rotterdam. The move would have consolidated the company's headquarters in the Dutch city.

The reversal represents a surprise capitulation for outgoing Chief Executive Paul Polman, who made the consolidation effort his swan song at Unilever. After fending off an unsolicited bid from American rival Kraft Heinz Co. Mr. Polman and the board embarked on a strategic review.

The company had decided consolidating its two operating companies -- a legacy of a merger between a Dutch margarine maker and a British soap company -- would make it more nimble.

But it proved divisive. A parade of big, institutional investors came out publicly against the move in recent weeks. That had raised question about whether Unilever could muster enough support to win approval of the plan at a vote later this month.

The Anglo-Dutch maker of Dove soap and Magnum ice creams said it continues to believe that simplifying its structure would serve its best long-term interests.

Unilever said it will consider its next steps and continue to engage with shareholders. The company said it will also proceed with its plan to cancel its Dutch preference shares.

(END) Dow Jones Newswires

October 05, 2018 03:09 ET (07:09 GMT)

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