UK Regulator Blocks Unilever and McCormick Merger

The Competition and Markets Authority blocked the phase 1 antitrust clearance of a proposed $44.8 billion merger between Unilever and McCormick. The UK regulator determined the deal creates a realistic prospect of a substantial lessening of competition, specifically regarding the supply of pour-over sauces and dry ingredient mixes to retailers in the United Kingdom.

While the regulator found that the merger would combine the two largest branded suppliers in these categories, it ruled that the mustard market would not be negatively impacted. The CMA noted that consumers view American, French, and English-style mustards as non-substitutable products.

The proposed deal previously cleared antitrust review in the United States in October. Unilever and McCormick now have until November 18 to provide acceptable undertakings to resolve the CMA's concerns. If the companies fail to offer a satisfactory remedy, the merger will face an in-depth phase 2 investigation.