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Unilever may cancel HQ unification plan over Dutch exit tax

Unilever may cancel HQ unification plan over Dutch exit tax

Mubasher: Unilever will likely scrap a plan to merge its Dutch and British entities into one London-based company, if parliament in the Netherlands passes a law requiring an exit tax over the deal, Reuters reported on Monday.

Under the new proposed law, the Anglo-Dutch consumer goods company would pay EUR 11 billion to the Dutch government, according to a bourse disclosure.

Unilever said it did not think the law, proposed by the opposition Green Left political party, was legal.

Nevertheless, if the bill were enacted in its present form, the boards believe that proceeding with unification, if it resulted in an exit tax charge of some 11 billion euros, would not be in the best interests of Unilever,” the company added.

The remarks came ahead of an extraordinary general meeting (EGM) on 21 September to approve the unification.

In June, Unilever announced a plan to unify its London and Dutch headquarters, noting that the plan will not affect operations or employees in the two countries.