Unilever Nears Deal to Merge Food Business with McCormick

The potential $15.7 billion transaction would give Unilever shareholders majority control of the combined entity.

Mar. 31, 2026 at 6:39am

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A high-end, photorealistic studio still-life photograph featuring a collection of premium, polished metal spice containers, whole spices, and a glass bottle of hot sauce against a clean, monochromatic grey background, conceptually representing the merger of Unilever's food business with McCormick.The merger of Unilever's food division with spice maker McCormick will create a powerhouse in the global condiments and seasonings market.McCormick Today

Unilever announced it is in advanced talks to combine its food business with spice maker McCormick in a potential deal that would deliver roughly $15.7 billion in cash to the consumer goods giant. If completed, the transaction would be structured as a Reverse Morris Trust, allowing Unilever shareholders to retain a 65% stake in the merged entity.

Why it matters

The deal would mark a major strategic shift for Unilever, which has faced pressure from investors to streamline its portfolio and focus on higher-growth personal care and beauty brands. It also reflects broader trends in the packaged food industry, where consumer demand has shifted towards fresh, healthier options and away from traditional branded products.

The details

Under the proposed agreement, Unilever would spin off its food division and then merge it with McCormick, the owner of Cholula hot sauce. Analysts have valued Unilever's food business at between 28 billion euros and 31 billion euros, including debt. The transaction would exclude certain Unilever food assets, such as its operations in India. The deal would be Unilever CEO Fernando Fernandez's biggest move since taking the helm in 2025, following the spin-off of the company's ice cream business last year.

  • Unilever announced the advanced talks on March 31, 2026.
  • The potential deal could be concluded as soon as today, although there is no certainty an agreement will be reached.

The players

Unilever

A multinational consumer goods company that owns a portfolio of food, personal care, and home care brands.

McCormick

An American food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products.

Fernando Fernandez

The current CEO of Unilever, who took over the role in March 2025.

Nelson Peltz

A billionaire activist investor who has built a stake in Unilever and has been linked to the departure of previous Unilever CEOs.

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What they’re saying

“Work remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed.”

— Unilever

What’s next

If the deal is finalized, Unilever shareholders would retain a 65% stake in the combined entity, while McCormick would own the remaining 35%. The transaction would be structured as a Reverse Morris Trust, which offers tax benefits.

The takeaway

This potential merger represents a significant strategic shift for Unilever, as the company looks to streamline its portfolio and focus on higher-growth personal care and beauty brands. The deal also reflects broader industry trends, as consumers increasingly favor fresh, healthier options over traditional packaged food products.