Wolseley Plc, the world’s largest supplier of heating and plumbing products, said it will create a holding company in Jersey and move its tax residence to Switzerland after its net loss for the year narrowed.
The company will create a new holding company, New Wolseley, registered on the island in the English Channel and will pay tax in Switzerland, it said in a statement today. Wolseley reported a net loss of 340 million pounds ($538 million) for the year to July 31, compared with a loss of 1.17 billion pounds a year earlier.
Wolseley follows U.K. companies Shire Plc and Ineos Group Holdings Plc in moving where they are based in order to pay less tax. The move won’t affect tax on the U.K. business, the company said. New Wolseley will have the same board and management team as Wolseley.
“The proposals will not result in any changes in the day- to-day operations of the business of the group or its strategy,” the company said.
Deutsche Bank AG and Merrill Lynch International are acting as joint sponsors to New Wolseley’s listing and as joint corporate brokers.
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