Unilever, McCormick near deal to create $60 billion food business

p>Unilever said on Tuesday it was in advanced talks to combine its food business with spice maker McCormick in a potential deal that would deliver $15. 7 billion in cash and give ⁠shareholders majority control of the merged entity.

If completed, the transaction would be structured as a so-called Reverse Morris Trust, which offers tax ⁠benefits. Unilever would spin off the division and then merge it with the Cholula hot sauce ‌owner.

It is expected that Unilever shareholders would ​retain a 65% stake in the combined entity. Analysts at Barclays valued Unilever's food business at between 28 billion euros ($32. 10 billion) and 31 billion euros, including debt.

That, combined with McCormick's $14. 2 billion market capitalization and the $15. 7 billion in cash could value a new combined entity at over $60 billion.. Jerry of Ben & Jerry's resigns, says ice cream company has been 'silenced' by parent group Unilever.

The potential deal marks Fernando Fernandez' biggest move yet since taking the helm at Unilever in March 2025 and ​comes after he completed the spin-off last year ⁠of Unilever's multi-billion euro ice cream business, home to Ben & Jerry's and Magnum.

Though Unilever's food unit is a high-margin business, sales growth has lagged the company's personal goods and beauty businesses and weighed on its ambition to increase overall group sales by 4%-6% in the near term..

Unilever's demerged ice cream entity to acquire 61. 9% stake in Kwality Wall's.

"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 said in a statement on the talks with McCormick.