Unilever, the Anglo-Dutch consumer goods multinational whose vast stable of brands includes Dove, Knorr and Ben & Jerry's, has opted to have its sole headquarters in the Netherlands rather than Britain, ending a dual structure that goes back nearly 90 years.
The company said Thursday that the decision to pick Rotterdam over London is part of a raft of structural changes that will turn it into "a simpler, more agile and more focused business."
While Unilever made no mention of Britain's impending departure from the European Union, the decision should in practice help it manage the uncertainties of Brexit and is highly symbolic at a time of doubts over London as a global capital, reports Reuters.
Many firms with operations across the EU are worried about the potential disruption after Britain leaves the bloc in a little more than a year's time. In a scenario where Britain and the EU fail to agree the outlines of a future relationship, tariffs could be slapped on a host of products, hobbling supply chains and raising costs for firms.
Unilever, however, argued that the move is driven by its need to simplify the company's structure. Last year, it vowed to slim down its organisation and create more value for shareholders after rebuffing a $143 billion hostile takeover bid by rival Kraft Heinz.
Besides consolidating the headquarters, it will also divide its operations into three divisions — Beauty & Personal Care, Home Care, and Foods & Refreshment.
"The board believes the move to three divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change," Chairman Marijn Dekkers said.
"The changes announced today also further strengthen Unilever's corporate governance, creating for the first time in our history a 'one share, one vote' principle for all our shareholders."
David Cheetham, chief market analyst at XTB, said the reasoning seems "pretty logical" given that the Dutch business represents 55 per cent of Unilever's overall share capital and that the shares listed in Amsterdam are more liquid than those in London.
Though the dual headquarters will become a thing of the past, the company's shares will continue to be traded in London. On Thursday, the share price was down 1.5 per cent in Amsterdam and in London.