Unilever choose Rotterdam over London "due to Brexit"

Unilever, who are the producers of products like Marmite, PG Tips and Dove soaps, have chosen to base their headquarters in Rotterdam instead of London. While the company has denied that the move is due to Brexit, many feel that the UK's decision to leave the EU may have inspired this move. The company have stated they feel this move will allow them to become "more agile" and some feel that this shows "what business really feels" about the UK's departure from the EU.

You can read more on the story here.

What do you make of this? Do you think was a good move? Do you think this was due to Brexit?

Reply 1

Retired_Messiah

The company said the decision over its HQ was "not about Brexit".

I think that clears it up, no? Don't see any benefit from lying about it.

Reply 2

Notoriety

Not everything is about bloody Brexit, you know.

Reply 3

Duncan2012

Why lie with a fake headline? The article clearly states it's nothing to do with Brexit so stop trying to pretend it is.

Reply 4

the bear

they clearly don't want to upset their main consumers of Marmite & PG Tips by blaming Br*x*t.

Reply 5

Rakas21

Original post by Danny Dorito

I think it's a shame and is probably in part due to Brexit however looking deeper into Unilever you do see that they have always been based at least in part in the Netherlands so presumably this is a reflection of their focus being on Europe rather than the rest of the world.

With all that being said however this will actually cost no jobs because they are splitting the business into three and their beauty and personal care division will be remaining in the UK. So we lose the decision making but keep the product development.

On the whole then, slightly bad but for most it should be a meh moment.

Reply 6

Duncan2012

Original post by Danny Dorito

What do you make of this? Do you think was a good move? Do you think this was due to Brexit?

Did you actually read the article? Some quotes:

Unilever chief executive Paul Polman told the BBC the leaders of the first two divisions were being brought to the UK from the US and Singapore, "and related to that, there will be transfers of jobs as well".

"No jobs will be lost by the move."

"This is not about Brexit," he said, adding that "both countries are attractive from an investment point of view".

So, a more efficient business = good for shareholders. No job losses = good for employees. Jobs coming to the UK. Not about Brexit. UK attractive for investment. How is this story anything other than a ringing endorsement of the UK? Stop being so negative.

Reply 7

Just my opinion

Original post by Rinsed

This isn't really a problem for Britain as a whole. It is, however, a blow for the LSE.

One of many.

Reply 8

999tigger

Original post by Notoriety

Not everything is about bloody Brexit, you know.

Ofc they are going to say that, but am highly sceptical as to the timing. Imo they see the future and wish to be regulated by the EU.

Wont make much difference but I think I will buy less of their goods from now.

Reply 9

Notoriety

Original post by 999tigger

The company's chairman gave the following reason (found in the FT).

[It] will simplify our business and a single share class will give us more flexibility for major M&A—though there are no plans for this.

The company is currently two companies: one trading in the UK and the other trading in the Netherlands. There's one executive team working in both. Quite common for different "levels" of companies within a corporate group, but it is quite unusual (AFAIK) for a company to be split at equal levels to complete the same task. If you consider the culture of this industry, it is heavily M&A (especially at this large conglomerate level) and only last year Heinz Kraft attempted a takeover of the company, which failed. This was Sept 2017, they were considering simplifying in Nov 2017 but pushed the decision back to now. Lastly there are still "head offices" in the UK, of two of their three divisions, still lots of execs.

Could it be tied or influenced by Brexit? Possibly. But Brexit is not the only explanation for the decision.

Reply 10

999tigger

Original post by Notoriety

The company's chairman gave the following reason (found in the FT).

The company is currently two companies: one trading in the UK and the other trading in the Netherlands. There's one executive team working in both. Quite common for different "levels" of companies within a corporate group, but it is quite unusual (AFAIK) for a company to be split at equal levels to complete the same task. If you consider the culture of this industry, it is heavily M&A (especially at this large conglomerate level) and only last year Heinz Kraft attempted a takeover of the company, which failed. This was Sept 2017, they were considering simplifying in Nov 2017 but pushed the decision back to now. Lastly there are still "head offices" in the UK, of two of their three divisions, still lots of execs.

Could it be tied or influenced by Brexit? Possibly. But Brexit is not the only explanation for the decision.