Unilever delays ice cream spinoff amid U.S. government shutdown

Unilever has delayed the planned spinoff of its ice cream division, now known as The Magnum Ice Cream Company (TMICC). The company adjusted its schedule because the ongoing U.S. government shutdown has prevented the Securities and Exchange Commission (SEC) from finalizing TMICC’s listing in New York, Unilever said in a statement on Tuesday.

TMICC, which encompasses brands like Magnum, Cornetto, and Ben & Jerry's, had initially planned to complete its spinoff by mid-November. Following that, the company was set to make its stock market debut in Amsterdam, London, and New York. The company's headquarters will be located in Amsterdam.

The company added that the “preparatory work” for the spinoff is proceeding as planned. “Unilever remains committed and confident that the spinoff will take place in 2025. Updates on the revised schedule will be shared as soon as possible,” the statement said.

In the meantime, Unilever's shareholders are proceeding with the scheduled vote on the proposed consolidation of the company's share capital, a step integral to the demerger process. Unilever will keep a 19.9% stake in the TMICC.

The U.S. government shutdown has left hundreds of thousands of federal workers unable to perform their duties until a budget deal is finalized. The U.S. government estimates that the shutdown is causing potential weekly economic losses of up to 15 billion dollars due to halted services and delayed approvals.