Britain risks losing £15bn Unilever ice cream deal

The UK risks losing a major multi-billion pound investment deal to the Dutch because Labour has failed to appoint an investment minister.

The warning came from former Barclays chairman Gerry Grimstone amid fears Amsterdam could win a battle for Unilever’s £15bn ice cream business, which includes Magnum, endorsed by model and actress Cara Delevingne.

Last night, Grimstone, who was investment minister from 2020 to 2022 and worked to try to get chipmaker Arm listed on the London stock exchange, called on the government to appoint someone with a specific mission to encourage foreign investment in the UK.

Labour had decided to hire Benjamin Wegg-Prosser, but he did not want to leave his current job as director of the advisory group Global Counsel that he co-founded with Lord Mandelson.

“It’s a difficult job, the person has to be familiar with Whitehall and be able to manage investors,” Grimstone said.

While Prime Minister Keir Starmer has been struggling to find an investment minister, the Dutch have been busy courting top Unilever executives.

The Mail on Sunday can reveal that Dutch Economic Affairs Minister Dirk Beljaarts met the Dutch chief executive of the consumer goods giant, Hein Schumacher, last month.

He is believed to have encouraged Unilever in a video conference meeting on August 19, in an introductory conversation, to list the £15bn spin-off on the Euronext exchange.

Last week, the Treasury refused to confirm whether City Minister Tulip Siddiq had met or been in contact with Unilever executives.

But Grimstone said such charm offensives were not within Siddiq’s purview.

Euronext said it was the leading listing venue for European companies, but declined to comment specifically on Unilever. The pan-European exchange has hailed 34 listings this year, raising £3.1bn.

In contrast, the London Stock Exchange gained eight companies in the first half of 2024, raising £513.8 million.

Schumacher said in July that the group was “making good progress” with the spin-off of the unit behind the Wall’s and Magnum ice cream brands.

The Dutch are confident they can secure the coveted offer, which would rub salt into the wounds of the City, which is suffering from an exodus of companies to other markets.

Finally, Arm also snubbed the UK when it decided to list in the US, despite ministers rolling out the red carpet for it.