US govt shutdown leaves Unilever demerger on ice

Business
By AFP | Oct 21, 2025

US President Donald Trump in the East Room of the White House in Washington, DC, on October 20, 2025. [AFP]

British consumer goods giant Unilever has postponed a demerger of its ice cream business, saying Tuesday that the US government shutdown meant a New York listing could not be approved.

The new standalone firm, The Magnum Ice Cream Company, which includes also the Ben & Jerry's brand, had been on track to begin operating by mid-November.

Unilever said Tuesday it remained "confident of implementing the demerger" this year, saying the delay was "a result of the ongoing US federal government shutdown".

At 20 days, the United States is enduring its longest full government shutdown -- the third-longest if partial stoppages are included.

Democrats are refusing to provide the handful of votes the ruling Republicans need to reopen federal departments unless agreement is reached on healthcare policy.

President Donald Trump has been ratcheting up pressure on Democrats to vote with his Republicans to reopen the government, with increasingly ominous threats to slash public services and ramp up mass layoffs.

The agency responsible for safeguarding the US nuclear stockpile began placing most staff on enforced leave Monday.

Unilever on Tuesday said that the US Securities and Exchange Commission is "unable to declare effective the US registration statement required for The Magnum Ice Cream Company".

This prevents its shares from being listed and traded on the New York Stock Exchange, Unilever noted.

Unilever is undergoing a turnaround to boost its performance, which has included spinning off its ice cream division, job cuts and bringing in new chief executive Fernando Fernandez this year.

The co-founder of Ben & Jerry's last month resigned from the brand after saying his company known for its social activism has lost "the independence to pursue our values" under the ownership of Unilever.

Jerry Greenfield's announcement follows the company's failure in 2022 to block Unilever from selling its ice cream in West Bank settlements, which Ben & Jerry's said would run counter to its values.

Responding at the time, The Magnum Ice Cream Company said the company remains committed to Ben & Jerry's mission and legacy. 

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