Unilever drops its plans to join London following the shareholders' uprising

As part of this plan, the consumer goods giant would have ended its dual-list structure, which divided its headquarters between London and Rotterdam. The move would have consolidated the company's headquarters in the Dutch city.

This reversal represents a surprise capitulation for outgoing CEO Paul Polman, who made the effort to consolidate his swan song at Unilever. After postponing an unsolicited bid from his American rival

Kraft Heinz
Co.

Mr. Polman and the board have undertaken a strategic review.

The company had decided to consolidate its two operating companies – the legacy of a merger between a Dutch margarine maker and a British soap firm – would make it more agile.

But that turned out to be a divisive factor. A parade of large institutional investors has publicly declared against the move in recent weeks. This had raised the question of whether Unilever could muster enough support to get the plan approved during a vote at the end of the month.

The Anglo-Dutch manufacturer of Dove soap and ice cream Magnum said he remained convinced that simplifying its structure would serve its best long-term interests.

Unilever has indicated that it will consider its next steps and continue to engage with shareholders. The company has announced that it will also pursue its plan to cancel its Dutch preferred shares.