Unilever Allocates €1.5 Billion Annually for US-Focused M&A Strategy Post Ice-Cream Demerger

Unilever PLC has announced a strategic allocation of approximately €1.5 billion (about $1.74 billion) annually for mergers and acquisitions (M&A), with a significant focus on the United States market. This decision follows the recent demerger of its ice cream division, The Magnum Ice Cream Company, which began trading on the Amsterdam stock exchange on December 8, 2025.

CEO Fernando Fernandez emphasized that this move aims to enhance Unilever's presence in high-growth, high-margin segments within the U.S. consumer goods market. The company has been streamlining its portfolio to concentrate on core brands, such as Dove, which experienced over 20% growth in its hair care segment in the last quarter.

The demerger of the ice cream division was driven by the distinct characteristics of the business, including its frozen supply chain, seasonality, and capital intensity, which differed from Unilever's other operating segments. Following the separation, Unilever anticipates its second-half operating margin to rise to at least 19.5%, up from 18.5% when including the ice cream division.

Unilever's increased investment in the U.S. market may influence local competitors and market dynamics, potentially leading to increased competition and innovation within the consumer goods sector.

Unilever's strategic realignment, marked by the demerger of its ice cream division and a substantial M&A budget focused on the U.S. market, positions the company to capitalize on high-growth opportunities and strengthen its core brand portfolio. This approach aligns with the company's broader Growth Action Plan 2030, aiming to accelerate growth through high-margin, high-growth categories such as beauty, wellbeing, and personal care.