Unilever said Tuesday it has delayed the planned separation of its ice cream business because of the ongoing U.S. federal government shutdown.
The delay stems from the U.S. Securities and Exchange Commission's inability to approve the registration statement required for the new entity, The Magnum Ice Cream Company N.V., to list its shares on the New York Stock Exchange, according to the company.
The consumer goods giant had previously targeted a Nov. 8 completion for the demerger, with trading in the new shares expected to begin on Nov. 10.
Unilever said it remains committed to completing the separation in 2025, stating that preparatory work is on track and progressing well.
The company noted that the potential for this specific delay was outlined in a shareholder circular published on Oct. 2.
A shareholder meeting to vote on a related share consolidation will proceed as scheduled, but the implementation of that plan will also be revised, the company said.
Unilever said it would provide updates on a new timetable as soon as practicable.
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