Unilever McCormick talks – summary
- Unilever confirms advanced discussions with McCormick regarding a potential transaction
- Company says agreement could be finalised today but remains uncertain
- Proposed deal combines most Unilever Foods assets with McCormick equity
- Transaction includes around $15.7bn upfront cash and majority equity stake
- Unilever and shareholders expected to hold 65% of combined business upon completion
Unilever PLC has confirmed it’s in “advanced discussions” with American multinational McCormick & Company over a “potential transaction”.
In a statement the British CPG said, “work remains ongoing to agree and finalise a transaction,” but that “an agreement could be concluded today”.
Though it cautions there’s no certainty a deal will be agreed at all.
This morning’s announcement follows weeks of speculation over the British CPGs potential move away from food.
In a clear attempt to control the narrative around the potential split, Unilever took the unusual decision to last week confirm it’s in talks with McCormick, and today confirm they’re advancing.
Talks like this typically take place behind closed doors, with a response of ‘no comment’ given to reporters when rumours do begin to circulate, so Unilever’s open approach marks a possible shift in Big Food’s strategy.
Unilever-McCormick deal
If a deal goes ahead, Unilever says it expects it to involve a combination of Unilever Foods (excluding parts of its Foods portfolio such as its business in India) alongside McCormick, with an upfront cash component of approximately $15.7bn (€13.6bn) and the majority of the consideration in McCormick equity.
The British multinational says that upon completion, it’s expected Unilever and its shareholders would hold 65% of the combined company. The transaction would be undertaken by a Reverse Morris Trust, which is intended to be tax-free for US federal income tax, to Unilever and its shareholders.
Full terms would be announced if a transaction is agreed.
Unilever’s food exit
If an agreement is struck, it would represent one of Unilever’s most significant steps yet in reshaping its portfolio around beauty, wellbeing and personal care, signalling a firm break from some of its longest‑held food assets.
The move also underscores a shifting landscape in Big Food, where legacy brands are under pressure to find growth through scale, specialisation or both. Unilever’s unusually open handling of the process points to how high‑profile such strategic moves have become, and how closely they’re being watched.
Whether the deal proceeds or not, the talks mark a pivotal moment for Unilever and a sign of the accelerating change sweeping through the packaged food sector.
We’ll be keeping a close eye on developments and bringing you updates as soon as they happen.
