Unilever ice-cream spin-off delayed by US government shutdowns

Core Viewpoint - Unilever has delayed the demerger of its ice-cream business due to the US government shutdown, affecting the timeline for the spin-off and subsequent stock market listings [1][2]. Group 1: Demerger Details - The spin-off of the ice-cream business, expected to be finalized in mid-November, is now postponed, with no new timetable set [1][2]. - Unilever remains committed to the demerger, aiming for implementation in 2025, despite the current delays [3]. - The company will retain a 20% interest in the new entity, The Magnum Ice Cream Company (TMICC), for up to five years [3]. Group 2: Financial Performance - In the first half of the year, Unilever reported underlying sales growth (USG) of 3.4%, with a turnover of €30.1 billion ($34.9 billion) [6]. - Ice-cream sales outperformed other segments, achieving a USG of 5.9% and a turnover of €4.6 billion, with a volume increase of 3.8% [6]. - The rest of the food business underperformed, with a USG of 2.2% and a turnover of €6.6 billion [6]. Group 3: Shareholder Actions - Shareholders approved the post-consolidation of shares following the spin-off, but this process will also be delayed due to the US government shutdown [4][5]. - The share consolidation aims to maintain comparability in share price, earnings per share, and dividends before and after the demerger [5]. Group 4: Separation Costs - Unilever anticipates incurring €800 million in separation costs related to the ice-cream spin-off, primarily for technology, with 80% expected to be realized by the end of 2026 [7].