UK at risk of losing out on Unilever ice-cream float

The UK is at risk of losing out on a key deal for London because it hasn’t appointed an investment minister, according to a former Barclays chairman.

Gerry Grimstone, who also worked as investment minister at the Treasury from 2020-2022, said that Labour’s lack of focus on boosting the UK’s stock market may see Unilever’s ice-cream business listed in Amsterdam over London.

With just under a month to go until a critical test of the new government’s economic credentials – its flagship investment summit on 14 October – Grimstone called on the government to appoint someone who has the dedicated remit of encouraging inward investment into the UK.

Benjamin Wegg-Prosser had been the leading candidate to take the job, but withdrew from the process in order to focus on his geopolitical consulting firm Global Counsel.

‘It’s a difficult job, the person has to be familiar with Whitehall and able to manage investors,’ Grimstone told The Mail on Sunday.

Unilever announced in March that it would spin-out brands like Magnum, Wall’s and Ben & Jerry’s by the end of 2025 as part of efforts to create a leaner business. 

Plans to spin-out the ice cream operations come as its boss Hein Schumacher looks to reverse years of lacklustre performance that has put Unilever under pressure from shareholders.

Along with London, the other potential homes for Unilever’s ice-cream business are Amsterdam and New York.

Dutch ambassadors have reportedly encouraged Unilever to list on Euronext, while the New York Stock Exchange has also reportedly made formal contact with Unilever bosses in an attempt to secure a float across the Atlantic.

Euronext welcomed 34 companies to its exchange this year, with £3.1bn raised, while the London Stock Exchange welcomed just eight, with £513.8m raised.

Unilever was contacted for comment.