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Unilever has denied snubbing London after the consumer goods giant picked Amsterdam as the main market for its €15bn (£12.5bn) Magnum business despite fierce lobbying by Rachel Reeves.
The company said its ice cream business, which is being spun off with an expected value of between €10bn and €15bn, would have secondary listings in New York and London, but its primary stock market listing in Amsterdam.
Hein Schumacher, chief executive of Unilever, said the board had taken a logical approach to the decision, which included taking into account an earlier commitment to the Dutch government in 2020 regarding listing its food and refreshment division in the Netherlands.
He said: “This is not a snub to London or to the UK. We’re very committed to the success of the UK economy and will continue to invest significantly in the next couple of years.”
However, its decision to prioritise the Netherlands will be regarded as a setback for the Chancellor after she met Unilever to discuss its plans.
In government transparency filings, Ms Reeves is shown as having met with Unilever officials last September to discuss “investment in the UK and capital markets and reforms”.
It is the latest blow to the London Stock Exchange, which has been snubbed for several new floats and lost a number of blue chip companies to the US.
Unilever announced the details of the listing structure alongside annual results and a €1.5bn euros (£1.3bn) share buyback. Shares sank by 5pc in early trading in London, making it the second-biggest loser on the FTSE 100.
Mr Schumacher had laid out cost cuts at the company last year, including separating the ice cream division and cutting thousands of jobs to address years of underperformance.
The ice cream business – which includes the Magnum and Wall’s brands – generated turnover of €8.3bn in 2024.
Dirk Beljaarts, the Dutch minister of economic affairs, said the decision confirmed Unilever’s “confidence in the Netherlands and underscores the competitiveness and attractiveness of our business climate”.
UK officials introduced a range of listing reforms last year aimed at helping London compete with New York and the European Union after Brexit. This easing of rules has yet to yield a noticeable turnaround in initial public offerings amid a long spell of outflows from UK funds.
Equipment rental firm and FTSE 100 member Ashtead Group in December, for instance, announced plans to shift to New York, where many companies believe they can get a higher valuation.
Unilever’s shares, whose primary listing is in London, trade on the same three stock exchanges where it plans to list its ice cream business.