Unilever postpones US$15B ice cream demerger amid USA government shutdown

UK – Unilever has announced there will be a delay in the timeline for the demerger of its Magnum Ice Cream Company, citing the ongoing USA federal government shutdown as a significant factor.

The postponement is primarily due to the US Securities and Exchange Commission (SEC) being unable to declare effective the registration statement necessary for the shares of The Magnum Ice Cream Company to be traded.

This regulatory hurdle highlights the challenges companies face in navigating compliance and approval processes, particularly in times of governmental disruption.

Despite this setback, Unilever reassured stakeholders that preparatory work for the demerger is progressing well and remains on track. The company noted its commitment to completing the spin-off within the current year, although the specific timeline will be revised in light of the current circumstances.

In a related development, Unilever confirmed that a general meeting of shareholders is still set to take place later today. This meeting will address the proposed consolidation of Unilever’s share capital, which is intricately linked to the demerger process.

However, the timeline for implementing this consolidation will also be subject to updates, reflecting the broader uncertainty stemming from the government shutdown.

The planned demerger of Magnum is part of Unilever’s broader strategy to streamline its operations and focus on its core brands. By separating the ice cream business, Unilever aims to enhance operational efficiencies and unlock value for shareholders.

The Magnum brand, known for its premium ice cream products, has been positioned for growth, with anticipated secondary listings in Amsterdam and London alongside the New York listing.

Magnum Ice Cream Company reports 7.1% sales growth in H1 2025

Recently, the company reported 7.1% sales growth, driven by innovative launches and strong demand across Europe and North America.

There was a 5.0% Volume Growth in Q2, and 5.9% USG and 3.8% across H1. The company stated that this performance and business success are powered by its 19,000 passionate colleagues worldwide.

“We’re seeing strong momentum across Europe, Australia & New Zealand, Asia, and Türkiye, while growth in the Americas was more modest due to softening market conditions.

“Our innovation pipeline continues to excite from Magnum Utopia and Bon Bon across Europe to Yasso Poppables in the United States and Wall’s Bites in Asia. Cornetto Max and Talenti Layers are also expanding our premium offerings to consumers,” the company stated.

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