The Competition and Markets Authority (CMA) has invited interested parties to comment on McCormick & Company's proposed acquisition of most of Unilever's food business, marking the first step in the UK regulator's review of the multibillion-pound transaction.
The watchdog said on Tuesday (21) it is seeking initial views on the impact the deal could have on competition in the UK before formally launching its Phase 1 investigation.
Interested parties have until 5 August to submit written representations on any competition concerns. The CMA said it has already received the information required from the companies to begin the pre-notification process.
"The CMA is issuing this invitation to comment to allow interested parties to submit any initial views on the impact that the transaction could have on competition in the UK," the regulator said, adding that a formal Phase 1 investigation has not yet commenced.
The proposed acquisition was announced in March, when Unilever agreed to combine its foods business with US spices and seasonings group McCormick in a deal worth $15.7 billion in cash and shares.
The transaction would bring together Unilever's food brands, including Hellmann's mayonnaise and Knorr, with McCormick's portfolio, which includes Schwartz and Ducros herbs and seasonings, creating what the companies described as a global flavour leader.
The deal values Unilever Foods at an enterprise value of $44.8 billion. Under the agreed structure, Unilever shareholders will own 55.1 per cent of the combined company, while McCormick shareholders will hold the remaining 35 per cent. Unilever itself will retain a 9.9 per cent stake, which it intends to dispose of over time.
The combined business, which will operate under the McCormick name, is expected to generate annual revenues of around $20 billion. McCormick will retain its global headquarters in Maryland, US, while establishing international headquarters in the Netherlands and securing a secondary European stock market listing.
The transaction excludes Unilever's food business in India and remains subject to shareholder and regulatory approvals, with completion targeted by mid-2027.
For Unilever, the disposal forms part of its strategy to focus on its higher-growth home and personal care businesses following last year's spin-off of its ice cream division, which included brands such as Magnum and Ben & Jerry's.