Government shutdown delays Magnum ice cream's listing by nearly a month
The ice cream brand's IPO that was scheduled for Nov. 10 has been pushed back to Dec. 8
Hollie Adams/Bloomberg via Getty Images
The U.S. government shutdown has already disrupted travel, museums and national parks. It's also hurting one of the world’s biggest ice cream brands.
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Consumer good giant Unilever said this week its planned spin-off and public listing of the Magnum Ice Cream Co. will be delayed by nearly a month because of the deadlock in Washington. Magnum was originally set to start trading in Amsterdam, London, and New York on Nov. 10, but that has now been pushed to Dec. 8.
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The delay came because the Securities and Exchange Commission is unable to declare the registration statement, which is needed for Magnum shares to list and trade on the New York Stock Exchange.
It underscores the broad-reaching effects of the federal government shutdown, which became the longest in history on Wednesday at 36 days. Analysts have said it is likely costing the economy about $15 billion a week in lost activity.
Most of the SEC’s staff have been furloughed, leaving the agency unable to perform many of its usual tasks, including reviewing and approving listings.
Unilever is spinning off the ice cream unit of its business, which also includes brands like Ben & Jerry’s, as chief executive Fernando Fernández looks to pivot the company away from food towards beauty and personal care products.
Goldman Sachs warned Monday that the shutdown's impact on economic activity could far exceed past shutdowns. The investment bank noted that the current shutdown affects far more agencies compared to the last government closure, which lasted 35 days from late 2018 into 2019. In that shutdown, Congress had passed short-term funding bills for some federal agencies.
Meanwhile, Transportation Secretary Sean Duffy said Tuesday that U.S. airspace closures are possible next week if the shutdown continues, warning of “mass chaos.”
"You will see mass flight delays," he said. "You'll see mass cancellations, and you may see us close certain parts of the airspace, because we just cannot manage it because we don't have the air traffic controllers."
—Joseph Zeballos-Roig and Chris Morris contributed to this article.