City watch: Unilever completes ice cream division demerger

Andrew Mann from JM Finn discusses the demerger of Unilever's ice cream division.

In a move that signals the final, decisive chapter of Unilever’s post-activist shake-up, the consumer goods behemoth has completed the demerger of its ice cream division, creating a new, separately listed entity: The Magnum Ice Cream Company.

This split – which places global power brands like Magnum, Ben & Jerry’s, and Cornetto under their own banner – is more than a corporate restructuring – it’s a strategic excision designed to unlock value by simplifying Unilever’s sprawling portfolio and concentrating its focus.

The core reasons for the separation boil down to the ice cream business’ fundamental lack of complementarity with the rest of Unilever’s operations.

It is inherently highly seasonal, a char