LONDON: Unilever has postponed the demerger of its ice cream division due to the ongoing US government shutdown.
The British consumer goods giant confirmed the Magnum Ice Cream Company’s New York listing cannot proceed without SEC approval.
“The delay is a result of the ongoing US federal government shutdown,“ Unilever stated Tuesday.
The company remains “confident of implementing the demerger” this year despite the setback.
The new standalone entity includes popular brands like Ben & Jerry’s alongside Magnum.
Unilever noted the Securities and Exchange Commission is “unable to declare effective the US registration statement required for The Magnum Ice Cream Company”.
This prevents shares from being listed and traded on the New York Stock Exchange.
The US is experiencing its longest full government shutdown at 20 days.
Democrats refuse to provide votes Republicans need unless healthcare policy agreement is reached.
President Donald Trump continues pressuring Democrats with threats of service cuts and layoffs.
Unilever’s turnaround strategy includes spinning off ice cream, job cuts, and new CEO Fernando Fernandez.
Ben & Jerry’s co-founder Jerry Greenfield recently resigned, citing lost “independence to pursue our values”.
The brand failed in 2022 to block Unilever from selling ice cream in West Bank settlements.
The Magnum Ice Cream Company maintains commitment to Ben & Jerry’s mission and legacy. – AFP
