Unilever nears deal to create $60 billion food giant with spice-maker McCormick: Report

Unilever is close to finalising a deal to combine parts of its food business with McCormick & Company, creating a new entity valued at around $60 billion, according to a report by The Wall Street Journal.

The proposed transaction is expected to be structured as a cash-and-stock deal, with Unilever shareholders likely to own roughly two-thirds of the combined food business, the report said.

The deal could be announced as early as Tuesday and is set to include a cash component of approximately $16 billion, according to sources cited by the newspaper.


Read more: Unilever considers carving out its food business; India won't be part of McCormick deal

If completed, the move would mark a significant consolidation in the global food industry, bringing together two major players in packaged foods and seasonings.

Unilever indicated that the transaction would likely be executed through a Reverse Morris Trust, a structure designed to be tax-efficient for US federal income tax purposes.

If completed, the arrangement would allow Unilever to separate and merge parts of its food portfolio with McCormick while retaining significant ownership in the new entity.

India Business Likely to Be Excluded

The company noted that the proposed combination would exclude certain segments of its food portfolio, including its operations in India.

This suggests a strategic reshaping of Unilever’s global food business while maintaining key regional assets.

Major Consolidation in Global Food Industry

If finalised, the deal would mark one of the largest consolidations in the global food sector, bringing together two major players in packaged foods and seasonings.

The combined entity could significantly strengthen its position in international markets, particularly in branded consumer food products.

Official Announcement Expected Soon

While reports suggest the deal could be announced as early as Tuesday, Unilever reiterated that discussions are still ongoing and final terms have yet to be agreed.

The company said it will provide further updates as appropriate, depending on the progress of negotiations.

Inputs from agencies