McCormick & Company Inc. to Acquire Unilever PLC Food Business for £33.8 Billion

The US-based condiment company McCormick & Company Inc. is set to acquire the food business of Unilever PLC in a deal valued at £33.8 billion. The agreement, initiated in March and expected to close by mid-2027, involves the purchase of major brands including Hellmann's, Marmite, and Colman's. Unilever PLC will receive approximately $15.7 billion (£11.9 billion) in upfront cash and McCormick equity, though Unilever PLC and its shareholders will retain a 65% stake in the food business.

To support the transaction, McCormick & Company Inc. intends to seek a secondary share listing on the London Stock Exchange while maintaining its primary listing on the New York Stock Exchange. The combined entity expects to achieve annual cost efficiencies of roughly $600 million (£453.2 million) through a reorganization into four divisions.

The deal has faced both regulatory and investor headwinds. The UK's Competition and Markets Authority has opened a consultation until August 5 to determine if the merger would substantially lessen competition or raise consumer prices. Additionally, the announcement led to a drop in Unilever PLC's share price and prompted major investor Terry Smith to sell his entire stake in the company in protest of the decision.