The company says that it is currently contemplated that it would involve a combination of Unilever Foods (excluding parts of its foods portfolio such as its business in India) with McCormick
Fast-moving consumer goods major Unilever said on Tuesday that it is in advanced talks to combine its food business with McCormick. This concerns a potential deal that would deliver USD 15.7 billion in cash and give the company’s shareholders majority control of the merged entity, as per the information available on the company’s website.
Unilever informed that work remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded by 31 March 2026, although there can be no certainty that a transaction will be agreed.
The company pointed out that if a transaction were to proceed, it is currently contemplated that it would involve a combination of Unilever Foods (excluding parts of its foods portfolio such as its business in India) with McCormick, with an upfront cash component of approximately USD 15.7 billion and the majority of the consideration in McCormick equity.
Upon completion of the transaction, it is expected that Unilever and its shareholders would hold 65 per cent of the combined company, it noted. 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 will be notified if a transaction is agreed, the company said while responding to media speculations.
Reuters reported that the deal with McCormick comes on top of an ongoing cost-cutting programme the company has had in place since 2024. The programme is meant to save around 800 million euros in costs over the next three years.
In a separate development, The Magnum Ice Cream Company (TMICC) has completed the acquisition of 61.9 per cent of the equity shares of Kwality Wall’s (India) or KWIL under the terms of the Share Purchase Agreement (SPA) with Unilever dated 25 June 2025.
KWIL will continue to trade on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as a majority-owned subsidiary of the TMICC Group, the company said. A mandatory tender offer, made in accordance with applicable Indian laws, is currently underway and it is expected to conclude within the next four to six months.
