Unilever announces steps to make it a more agile and focused business entity.
March 15, 2018
by Canadian Packaging staff
LONDON/ROTTERDAM—Unilever has announced the next steps in its transformation into a more simple, more agile and more focused business, which will further drive long-term performance and shareholder value, and build upon its Connected 4 Growth program.
Unilever, the U.K.’s third-biggest company, will scrap its London, U.K. corporate headquarters and make Rotterdam in The Netherlands its sole legal home, a move that is also seen as a blow to Prime Minister Theresa May’s government ahead of Brexit from the EU.
Unilever is evolving its structure to be based on three Divisions:
Secondly, it is proposing to simplify its corporate structure:
The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-term performance.
The changes also further strengthen Unilever’s corporate governance, creating, for the first time, a ‘one share, one vote’ principle for all shareholders. Upon completion, the N.V. preference shares will be cancelled, and it is intended to close the N.V. Trust Office and terminate the related depositary receipt structure. Unilever will also continue to apply both the UK and Dutch corporate governance codes.
Unilever’s employment of 7,300 people in the U.K. and 3,100 people in the Netherlands will be unaffected by the changes.
Unilever chairman Marijn Dekkers says: “Unilever’s Board is fully committed to delivering long-term performance and sustainable value for shareholders. The Board believes the move to three Divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change. Our decision to headquarter the Divisions in the UK and the Netherlands underscores our long-term commitment to both countries. The changes announced today also further strengthen Unilever’s corporate governance, creating for the first time in our history a ‘one share, one vote’ principle for all our shareholders.”
Company information available at www.unilever.com.
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