U.S. government shutdown delays Unilever's Magnum ice cream spin-off

Consumer goods radical Unilever is delaying the spin-off of its Magnum Ice Cream portion owed to the U.S. authorities shutdown, it said connected Tuesday, the latest illustration of planetary concern disruption from the impasse that shows small motion of ending.

Unilever, the shaper of Dove soap and Hellmann's mayonnaise, said the U.S. Securities and Exchange Commission was presently incapable to state effectual the registration connection required for shares of The Magnum Ice Cream Company to beryllium listed and traded connected the New York Stock Exchange.

The superior listing was primitively scheduled for November 10 successful Amsterdam, with secondary listings planned successful New York and London. Unilever volition clasp a 19.9% involvement successful the crystal pick concern that includes Magnum, Ben & Jerry's and Cornetto.

Cost to U.S. system

The hold underscores the disruptions caused by the three-week U.S. national authorities shutdown, which has deed IPOs, aviation and is expected to outgo the U.S. system arsenic overmuch arsenic $15 cardinal a week successful mislaid output.

Seoul-headquartered greenish vigor and exertion institution DeepGreenX Group withdrew its registration connection for a nonstop listing successful the United States connected Monday, owed to being incapable to pass with SEC staff.

The Magnum stand-alone crystal pick concern is simply a trial for capitalist appetite for a sugar-heavy merchandise successful its biggest marketplace astatine a clip erstwhile U.S. President Donald Trump's medication is pushing to 'Make America Healthy Again'.

Analysts expect the spin-off volition payment Unilever and Magnum by allowing some businesses to go much focused.

Unilever said preparatory enactment for the demerger was connected way and progressing well, and that it remained committed to completing the spin-off process this year. The company's shares were down 0.8% connected Tuesday, lone somewhat lagging rivals.

"We're not acrophobic by the delay," said Anna Farmbrough, UK Quality Portfolio Manager astatine Unilever capitalist Ninety One.

"The timing of the listing isn't particularly important successful the broader discourse — what matters is the prime of the underlying concern and its semipermanent maturation prospects."

U.S. IPO reviews halted during shutdown

The U.S. marketplace regulator has halted IPO reviews during the shutdown, though earlier this period it eased the mode for firms to proceed with listings contempt the governmental gridlock.

Companies are usually prevented from debuting connected Wall Street during periods erstwhile Congress has not approved backing for authorities operations, due to the fact that officials are incapable to reappraisal and o.k. registration statements.

That has prompted capitalist concerns that partisan gridlock successful Washington could dent the IPO market.

Companies tin let their statements to go effectual automatically, which involves mounting their IPO pricing 20 days earlier the listing alternatively of finalizing it connected the eve of a SEC review, but that tin heighten the hazard of filing errors oregon overlooked disclosures.

Despite the delay, Unilever held a wide gathering connected Tuesday astatine which shareholders voted successful favour of the projected consolidation of its stock capital. However, the implementation timeline for that volition besides beryllium revised, Unilever said.