Unilever has delayed the demerger of The Magnum Ice Cream Company as the United States federal government shutdown stalls regulatory approvals required for its planned listings.

The consumer goods group said the US Securities and Exchange Commission is currently unable to declare effective the registration statement needed for Magnum shares to be listed and traded on the New York Stock Exchange. The ice cream business, which also includes brands such as Ben & Jerry’s, Cornetto and Wall’s, had been scheduled to list on 10 November in Amsterdam, with secondary listings planned in New York and London.

In a statement, Unilever said preparatory work for the demerger “was on track and progressing well,” and that it remained “committed to completing the spin-off process this year,” with a revised timetable to follow. Reuters reported: “The U.S. Securities and Exchange Commission was currently unable to declare effective the registration statement required for shares of The Magnum Ice Cream Company to be listed and traded on the New York Stock Exchange.” The company added that “further updates on the revised schedule” would be provided “as soon as possible”.

The group confirmed that a general meeting of shareholders to vote on the proposed consolidation of Unilever’s share capital, related to the separation, will proceed as scheduled on Tuesday, though the implementation timeline for that consolidation will be adjusted. Shares Magazine noted the stock was 4,636.00 pence in London on Tuesday morning, down 0.5 per cent, and down 3.2 per cent over 12 months.

The shutdown has already disrupted capital markets oversight, with the market regulator halting most initial public offering reviews. Reuters said: “Companies are normally prevented from debuting on Wall Street during periods when Congress has not approved funding for government operations, because officials are unable to review and approve registration statements.” It added that companies can allow registration statements to become effective automatically by setting pricing 20 days before listing, rather than finalising it the night before following an SEC review.

RetailDetail reported that the renamed ice cream division, The Magnum Ice Cream Company (TMICC), would have been listed in New York and Amsterdam on 10 November. FoodBev Media said Unilever continues to target completing the separation within the current year and emphasised that preparatory work “is progressing well and remains on track”.

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