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Summary
- The unification process of Anglo-Dutch company Unilever plc was completed on 30 November
- The share price of the group jumped with the news of unification
- Since 1930, Unilever operated through two separated listed companies - a Dutch NV and a UK PLC
Consumer goods giant Unilever has announced that it has completed the unification process of its legal structure. The group had a dual-headed legal structure since it was created in 1930 and now it will operate under one single parent company, Unilever PLC. All this while, Unilever operated through two separated listed companies, a Dutch NV and a UK PLC.
A few days back, the shares of Unilever plc (LON: ULVR) closed in green on 27 November after showing a downward trend during a week before that. The company stock was trading at a value of GBX 4,586.00 at the day’s closure, up from the previous day’s value of GBX 4582.00 points.
On 30 November, at 9:30 AM, the company stock was hovering around GBX 4,645.00, showcasing an increase of 1.29 per cent from its previous day’s close.
The share price movement (GBX) of Unilever since the announcement of unification was made:
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Chronology of events
11 June: An announcement was made by Unilever where it unveiled its plans to unify its legal structure under a single parent company Unilever plc in order to create a simpler structure, allowing greater strategic flexibility. The unification was undertaken after an 18-month comprehensive review and was suggested to increase the strategic flexibility of the company for portfolio evolution and to strengthen its corporate governance by removing flexibility.
Established in 1930, the company had been owned by two different listed companies, i.e., NV of Dutch and PLC of the UK for the last 90 years.
12 October: The group disclosed that Unilever’s shareholders had duly passed the resolutions for a cross-border merger. Around 96 per cent shareholders voted in favour of the proposed resolutions.
27 October: The board of the group announced its intention to proceed the unification process and request the approval of cross-board merger from the High Court of the UK.
2 November: Unilever reported that the cross-border merger between Unilever NV and Unilever plc had been approved by the UK High Court on the basis of the Regulation 16 of The Companies Regulations 2007.
30 November: Unilever took to the London Stock Exchange to disclose that the unification process was done. Unilever can now trade on multiple stock exchanges in New York, Amsterdam, and London. It would have one global pool of liquidity, one MCap, and one class of shares.
Unification will not result in any change in the activities, locations, operations, or staffing levels in both the countries. Rotterdam will remain the headquarters of the company’s foods and refreshment division, while the UK would continue to be the headquarters of its home care and beauty & personal care divisions.
