Unilever nears landmark $15.7B food division merger with McCormick

Unilever is close to finalising a major deal to merge its food division with McCormick & Co. The announcement could arrive as early as Tuesday. Since talks were first reported two weeks ago, McCormick's stock has climbed sharply, reflecting investor interest in the potential partnership. The proposed merger would combine Unilever's food operations with McCormick, though some parts of Unilever's food portfolio will remain excluded. Upon completion, Unilever and its shareholders would control 65% of the newly formed company. The transaction includes an upfront cash payment of around $15.7 billion, with most of the deal structured as McCormick equity.

Unilever has described its food business as financially strong and attractive, even as it shifts focus toward high-growth areas like beauty and personal care—which currently make up 51% of its sales. The deal is also designed to be tax-free for U.S. federal income tax purposes.

Meanwhile, McCormick's stock has seen notable movement. On March 31, 2026, shares jumped 6.19% to 49.49€, and over the past week, they rose by 7.74%. However, the stock remains down by 20.18% over the past month. Unilever's shares, in contrast, stayed nearly flat at 45.41 pounds following the news. The merger would allow Unilever to streamline its focus on beauty and wellness while maintaining a stake in the food sector. If approved, the deal would reshape both companies' portfolios and market positions. An official announcement is expected in the coming days.