Unilever in Advanced Talks to Merge Food Unit with McCormick

Unilever, the global consumer goods giant, is in advanced talks to merge its food business with U.S.-based spice maker McCormick in a transaction valued at approximately $15.7 billion in upfront cash, plus equity stakes, according to company statements and market analysts.

The proposed deal, which could be finalized as soon as today, would structure the combination as a Reverse Morris Trust to provide tax efficiencies. Under this arrangement, Unilever would first spin off its food division as a standalone entity before merging it with McCormick. Unilever shareholders would receive about 65 percent ownership in the resulting company, retaining majority control while injecting significant cash into the parent firm. The transaction excludes Unilever's food operations in India and certain other assets.

Unilever's food portfolio includes well-known brands such as Hellmann's mayonnaise, Knorr soups, Colman's mustard, Marmite yeast extract, and Pot Noodle instant meals. McCormick, with a market capitalization exceeding $14 billion, brings complementary products like French's mustard, Cholula hot sauce, and a range of spices and seasonings. The merger would create a combined food entity...