Consumer goods major Unilever Plc. (UL,ULVR.L) on Tuesday confirmed that it is in advanced discussions to combine its food business with spice-maker McCormick & Co. (MKC).
In overnight trading in the U.S., Unilever shares were gaining around 1.7 percent, at $61.01, after closing Monday's regular trading 1% higher. McCormick shares were gaining 3.3 percent, at $55.49, after closing Monday's trading 1.2 percent higher.
The announcement follows recent media speculation regarding a potential strategic transaction involving elements of its Foods business, to create a new food giant valued at roughly $60 billion, including debt.
In a statement, Unilever noted that work remains ongoing to agree and finalise a deal, and it is possible that an agreement could be concluded on Tuesday, although there can be no certainty that a transaction will be agreed.
If the companies agree to a deal, it is expected to involve a combination of Unilever Foods, excluding parts of its Foods portfolio such as its business in India, with McCormick. The transaction is for an upfront cash component of approximately $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% of the combined company.
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.
The company will announce further details if a transaction is agreed.
In Mid-March, Unilever had confirmed that it has received an inbound offer for its Foods business and was in discussions with McCormick.
Unilever said it will make further announcements as appropriate.
For comments and feedback contact: editorial@rttnews.com
Business News
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.