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Marmite-maker scraps UK HQ for Dutch shift

Unilever (NYSE: UL - news) , the maker of top consumer brands including Marmite and Persil, is to abandon the UK as its headquarters as part of a major shake-up of the group.

The company confirmed the move to Rotterdam less than 24 hours after Sky News reported the decision was to be finalised by the boards of its dual British and Dutch holding companies.

Under the changes, which Unilever said would result in no job losses among its 7,300 UK staff, the two holding companies would become a "single legal entity incorporated in the Netherlands."

It began to ponder the shake-up after a £115bn takeover approach by US rival Kraft failed.

Dutch laws provide stronger defences against unwanted bid interest.

It also moved to dismiss any speculation of Brexit being a factor by explaining that shares in its current Dutch business accounted for the majority of its share capital.

Nevertheless, the shift abroad will be seen as a major blow to the Government as it tries to calm nerves in the business community about Britain's decision to leave the EU.

Unilever said London would continue to play a major future role because it was to make the city the headquarters for its Beauty and Personal Care and Home divisions - two of three to be created under the shake-up.

The company explained that the decision cemented almost £1bn of continued annual spending in the UK, including research and development work.

It said Unilever shares would continue to be listed in London, as well as in Amsterdam and the US, though it would no longer be eligible for inclusion in the FTSE 100 index because its domicile would be outside the UK.

Chairman Marijn Dekkers said: "Unilever's board is fully committed to delivering long-term performance and sustainable value for shareholders.

"The Board believes the move to three divisions and the simplification of our corporate structure will create a simpler, more agile and more focused company with increased strategic flexibility for value-creating portfolio change.

"Our decision to headquarter the divisions in the UK and the Netherlands underscores our long-term commitment to both countries.

"The changes announced today also further strengthen Unilever's corporate governance, creating for the first time in our history a 'one share, one vote' principle for all our shareholders."

The Government sought to play down the significance of the shake-up.

A spokesperson said: "Unilever has today shown its long-term commitment to the UK by choosing to locate its two fastest-growing global business divisions in this country, safeguarding 7,300 jobs and £1bn a year of investment.

"As the company itself has made clear, its decision to transfer a small number of jobs to a corporate HQ in the Netherlands is part of a long-term restructuring of the company and is not connected to the UK's departure from the EU."