FDBusiness.com

The Board of Unilever has decided to withdraw its proposal to simplify the global consumer products group’s dual-headed legal structure. Unilever had proposed to streamline its corporate structure by moving from two legal entities – Unilever NV and Unilever PLC, into a single legal entity incorporated in the Netherlands.

In developing the proposal, the Board was guided by the opportunity to unlock value for shareholders by creating a stronger, simpler and more competitive Unilever that is better positioned for long-term success.

Following an extensive period of engagement with shareholders, the Board has received widespread support for the principle behind simplification. However, it recognises that the proposal has not received support from a significant group of shareholders and therefore considers it appropriate to withdraw.

Marijn Dekkers, chairman of Unilever, says: “Unilever has built a long track record of consistent and competitive performance. The Board continues to believe that simplifying our dual-headed structure would, over time, provide opportunities to further accelerate value creation and serve the best long-term interests of Unilever. The Board will now consider its next steps and will continue to engage with our shareholders. We will proceed with the plan to cancel the NV preference shares, further strengthening our corporate governance.”