Unilever's Chilly Move: Ice Cream Division Heads to Amsterdam

Unilever is spinning off its ice cream business, selecting Amsterdam for its primary stock listing. This decision poses a challenge to UK finance minister Rachel Reeves. The move follows cost-cutting measures and reflects Unilever's strained relationship with Ben & Jerry's. Unilever's shares fell by 7% amid the news.

Unilever, the maker of Ben & Jerry's, announced plans to spin off its ice cream business with Amsterdam as the primary listing venue. Secondary listings include London and New York, potentially affecting UK finance minister Rachel Reeves.

The company's shares dropped by nearly 7% in early trading in London, erasing approximately £8.5 billion of its market value. This decision aligns with cost-cutting measures laid out by CEO Hein Schumacher and comes amid contentious relations with Ben & Jerry's over business strategies.

Amsterdam's selection is seen as a confirmation of confidence in the Dutch business climate. Meanwhile, UK efforts to retain Unilever have been challenged by previous commitments to the Netherlands, despite recent listing reforms post-Brexit aimed at boosting London's financial standing.

(With inputs from agencies.)