Unilever’s Magnum scoops up big chunk of Kwality Wall’s

Magnum, the global ice cream division of Unilever, will acquire a 61.9% stake in Kwality Wall’s (India) Ltd, according to a stock exchange filing by Hindustan Unilever Ltd (HUL).

The acquisition is part of HUL’s previously announced plan to demerge its ice cream business into a separate listed company.

In January, HUL’s board approved the spin-off, under which shareholders will receive one share in the new Kwality Wall’s entity for every HUL share they hold.

After the demerger and listing are completed, Unilever Group shareholders will receive 61.9% of the new company’s shares. These will then be transferred to Magnum HoldCo, which is spearheading Unilever’s global ice cream spin-off.

Following the acquisition, Magnum HoldCo will launch an open offer to buy more shares from public shareholders of Kwality Wall’s, as required under Indian takeover rules.

The deal is subject to several conditions, including regulatory approvals, successful listing of Kwality Wall’s, and final completion of the demerger.

Unilever had earlier announced plans to separate its global ice cream business, which includes brands like Magnum, Cornetto, and Kwality Wall’s, by the end of 2025.

The company cited the distinct cold-chain and distribution requirements of the segment as the reason for creating a standalone business.

HUL said that it—and later, Kwality Wall’s—will retain access to brand rights in India under current licensing terms at least until February 2028, pending approvals.