Unilever in Talks to Sell Food Unit to McCormick

Unilever PLC confirmed on Friday that it is in advanced discussions with McCormick & Company to sell or combine its Foods & Refreshment division, a move that could value the unit at up to 33 billion and mark a major strategic shift for the Anglo-Dutch consumer goods company. The talks, first reported earlier in the week, involve an unsolicited inbound offer from the Maryland-based spice and seasonings maker, which owns brands such as French's mustard and Cholula hot sauce. While no agreement has been reached and details remain preliminary, the potential transaction would unite Unilever's iconic food brands, including Hellmann's mayonnaise, Knorr stock cubes and Marmite, with McCormick's portfolio.

The confirmation follows months of speculation about Unilever's plans to streamline operations and focus on higher-growth areas. The company's food division, which generated about 14.9 billion in sales last year and accounts for roughly a quarter of total revenue, has lagged behind other segments amid shifting consumer preferences toward healthier, fresher options and reduced spending on processed foods. Unilever Chief Executive Fernando Fernandez, who assumed the role a year ago, has...