Unilever Picks Rotterdam Over London for Headquarters -- Update

By Saabira Chaudhuri and Costas Paris 

LONDON -- Unilever PLC has decided to consolidate its dual headquarters in Rotterdam over London, in an emotionally charged decision that came despite last-minute lobbying from the British government.

In a Wednesday board meeting, directors decided on the Dutch city but Unilever's board was still receiving calls from the U.K. government on Wednesday night, according to a person familiar with the matter.

The company's announcement early Thursday came alongside details of a broader restructuring of its operations into three divisions with separate headquarters. Beauty & personal care, as well as a home care unit, will be based in London, while its foods & refreshment division will continue to be based in Rotterdam.

The maker of Dove soap and Ben & Jerry's ice cream said the 7,300 people it employs in the U.K. and the 3,100 people in the Netherlands won't be impacted by the changes.

RBC analyst James Edwardes Jones said Unilever's announcement isn't a big deal for investors. "The decision over the location of Unilever's base is certainly politically charged, but in our view has little relevance from an investors or share price perspective," he said.

Unilever said the simplified structure will give it more flexibility to make portfolio changes and help long-term performance.

The news on its legal base confirms a Wall Street Journal article Wednesday that said the company's board had decided on the Dutch city.

Write to Saabira Chaudhuri at [e-mail] and Costas Paris at [e-mail]

(END) Dow Jones Newswires

March 15, 2018 04:15 ET (08:15 GMT)

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