Unilever has scrapped plans to sell its ice cream business as it instead eyes a spin-off for the £15bn division.

According to the Financial Times, city sources have revealed that Unilever is now aiming to spin-off the unit in an independent listing, however, a bidder for the division could still emerge.

The food and drinks manufacturer’s decision follows its announcement in March that it intended to split the division from the main business, as it seeks to become “leaner and more accountable”.

However, it was reported just weeks later that Unilever was facing difficulty in finding buyers for the division, which includes brands such as Magnum, Wall’s and Ben & Jerry’s due to the sheer size of the brands.

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It was thought buyers might have to pair up in order to bid on the brands, however, other challenges include the ice cream business performance, the logistics of such a large portfolio, and the seasonal nature of the product in Europe.

The news follows Unilever last week being sued by one of its ice cream brands, Ben & Jerry’s, which accused the consumer goods giant on silencing its public statements in support of Palestinian refugees amid the Israel-Gaza conflict.

The brand argued its parent company’s actions infringed the terms of a confidential settlement made between the pair in 2022 where Unilever agreed to “respect and acknowledge” Ben & Jerry’s social mission.