CONSUMER goods giant Unilever may be forced to hold on to its multibillionpound ice cream operations as the business' massive size makes it difficult to offload.

Unilever announced last month that it would spin out brands like Magnum, Wall's and Ben & Jerry's by the end of 2025 as part of efforts to create a leaner business. The move could possibly result in some 7,500 job losses.

However, a full sale of the roughly £15bn ice cream operations is considered by senior City figures to be unlikely, according to The Sunday Telegraph.

It reported that even interested parties like Middle Eastern state-backed funds and major private equity firms CVC, KKR and Blackstone would struggle to afford the full price tag. In the case of a sale, potential buyers would be expected to join forces in bidding consortiums to make a realistic offer.

Even still, the Anglo-Dutch firm could be forced to retain a minority stake in the business to bring down the price and leave it less exposed to criticism for selling the unit for too little.

City A.M. approached Unilever for comment.

Some analysts said Unilever could have got a better deal when it sold its spreads division, including Flora and Stork, for £6bn to KKR in 2017.

The FTSE 100 firm is also considering listing the ice cream business as a separate entity on the stock market. The New York Stock

Exchange has reportedly made formal contact with Unilever bosses in an attempt to secure a float across the Atlantic. Plans to spin out the ice cream operations come as Unilever's new chief executive Hein Schumacher looks to reverse years of lacklustre performance. As part of its cost-cutting drive, Unilever announced last week that it would scale back its environmental and social pledges.

(c) 2024 City A.M., source Newspaper