Unilever has delayed its demerger from the Magnum Ice Cream Company as a result of the ongoing US federal Government shutdown.

The multinational consumer goods brand announced that it was looking to sell its ice cream division last year, with the aim of saving £694m over the next three years.

It added that its ice cream businesses, which at the time included Ben & Jerry and Magnum, would be "better delivered under a different ownership structure".

However, due to government shutdown, the US Securities and Exchange Commission (SEC) is currently unable to declare the registration statement required for Magnum shares to be admitted to listing and trading on the New York Stock Exchange.

Unilever said that preparatory work for the demerger is on track and is progressing well.

It added that it remains commitment to and is confident of implementing the demerger in 2025.

Investment director at AJ Bell, Russ Mould, stated: "Unilever has fallen foul of the US government shutdown as the SEC cannot rubber stamp the paperwork for its ice cream division spin-off. There is nothing the consumer goods company can do about the situation apart from sit tight and wait.

"The spin-off of the ice cream arm has been in the making for a long time and waiting a bit longer won’t hold back the parent company. However, it will be frustrating for Unilever shareholders who might have been keen to sell their free shares in the ice cream business, or for investors who only wanted to buy into that entity.

"The corporate split will still go ahead; it’s just the timing that’s now uncertain."

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