Following growing criticism from investors, Unilever (LON: ULVR) has scrapped plans to move their HQ to Rotterdam.
The decision to stay in the UK will mean the Marmite owner will stay on the FTSE 100.
Announcing the decision on Friday, the group said: “Unilever has built a long track record of consistent and competitive performance. The board continues to believe that simplifying our dual-headed structure would, over time, provide opportunities to further accelerate value creation and serve the best long-term interests of Unilever.”
“The board will now consider its next steps and will continue to engage with our shareholders. We will proceed with the plan to cancel the NV preference shares, further strengthening our corporate governance.”
Shares edged up just 0.1 percent on the news.
Investors including Columbia Threadneedle, L&G, M&G and Aviva Investors had all spoken out against the move, saying they would vote against the move.
As well as investors, unions were also against the vote and possible movement to Rotterdam.
Unite national officer Rhys McCarthy said:
“Investors understand the need for great British-based companies like Unilever to retain their headquarters in the UK.”
“The UK’s weak takeover rules which put short-termism ahead of the long term are clearly a major factor in Unilever’s proposed move following a failed hostile takeover bid, as is the swirling uncertainty around Brexit.”
“Ministers need to get a grip on Brexit and toughen takeover rules to stop more firms like Unilever seeking to flee overseas,” he added.
Unilever is one of the biggest firms on the FTSE 100 and is valued at about £124 billion.
The vote was due to take place at the end of October, with one vote taking place in Rotterdam and one vote in London.
Unilever acknowledged the lack of support they expected to get in the London vote, which would have required 75 percent support.
“We have had an extensive period of engagement with shareholders and have received widespread support for the principle behind simplification,” said the group in the statement.
“However, we recognise that the proposal has not received support from a significant group of shareholders and therefore consider it appropriate to withdraw.”
