Unilever boss Paul Polman and PM Theresa May have insisted the fmcg giant’s decision to merge its UK plc and Dutch NV into one legal entity based in the Netherlands wasn’t inspired by Brexit. And I believe them, mostly. As analysts have pointed out, it makes sense for the company, which is making a big show of optimising efficiency after fending off the Kraft Heinz bid.
But I’d eat my hat with a slathering of Marmite if Brexit wasn’t factored into Unilever’s decision. Because the Netherlands doesn’t just offer better protection to businesses from hostile takeovers, it’s also in the single market - and looks set to stay there.
And if Unilever was influenced by Brexit, who could blame it? Warnings over potential trade disruptions appear to be falling on deaf ears, and the government has failed to provide businesses with the certainty they so desperately need as March 2019 approaches. So let’s hope that, no matter the motive, Unilever’s announcement gives the government the shock it needs to start taking the industry seriously as crucial negotiations begin.
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