THE WHAT? Unilever has announced that it plans to unify its group legal structure under a single parent company, Unilever PLC, creating a simpler company with greater strategic flexibility that is ‘better positioned for future success’.
THE DETAILS The decision was made after a ‘comprehensive’ 18-month review. Benefits of the new plan include increased strategic flexibility for acquisitions or demergers in anticipation of the increasingly dynamic business environment created by the COVID-19 pandemic as well as removing complexity and further strengthening the manufacturer of Dove’s corporate governance, creating an equal voting basis per share for all shareholders.
The company said that there would be no significant changes to Unilever’s footprint in the UK in either jobs or investment with the Home Care and Beauty & Personal Care divisions continuing to be headquartered in the UK.
THE WHY? Nils Andersen, Chairman of Unilever, explained, “Unilever’s Board believes that unifying the company’s legal structure will create greater strategic flexibility, remove complexity and further improve governance. We remain committed to The Netherlands and the UK and there will be no change to Unilever’s footprint in either country as a result of the proposed change to Unilever’s legal parent structure. We are confident that unification will help Unilever deliver its vision of driving superior long-term performance through its multiple stakeholder business model.”