UK – Unilever has declined to comment on reports suggesting it has abandoned plans to sell its ice-cream business to private equity firms.
The company, which owns brands like Ben & Jerry’s and Magnum, is instead focusing on a potential demerger of the ice-cream division into a separate listed entity by 2025.
The possibility of a demerger was first raised by Unilever CEO Hein Schumacher in March, who stated it was the “most likely route” to maximize shareholder returns. However, he also noted that other options were under consideration.
Shortly thereafter, rumors surfaced that Unilever had approached private equity firms to explore a sale of the ice-cream division. Unilever neither confirmed nor denied these reports at the time.
According to a report by the Financial Times on November 21, unnamed sources suggested that challenges such as the size and complexity of a deal, as well as operational considerations like logistics, hindered a potential sale.
The ongoing tensions between Unilever and Ben & Jerry’s over the ice-cream maker’s stance on social and political issues, including the Gaza conflict, were also cited as contributing factors.
An executive from a private-equity firm reportedly interested in the deal questioned how a buyer could operate the business differently than Unilever’s existing management, pointing out the unique challenges of ice-cream supply chains.
Unilever referred media inquiries back to Schumacher’s original comments about the demerger and chose not to address the speculation directly.
However, during the company’s third-quarter results announcement in October, CFO Fernando Fernandez reiterated that preparations for separating the ice-cream business were progressing.
He highlighted steps such as establishing a legal entity, carving out financials, and developing a stand-alone operating model.
The strategy to demerge ice cream has also influenced internal restructuring. Last week, Unilever confirmed some roles initially at risk of redundancy in Europe would be transferred to the ice-cream division, further emphasizing the company’s commitment to setting up the business as an independent entity.
The ice-cream business has been a source of friction between Unilever and Ben & Jerry’s, particularly regarding the latter’s outspoken positions on global issues.
Legal disputes dating back to 2021 include a recent lawsuit in which Ben & Jerry’s accused Unilever of silencing its attempts to advocate for Palestinian refugees.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
