The Competition and Markets Authority (CMA) today announced the launch of a merger inquiry into the proposed multibillion-pound acquisition of most of Unilever's food business by McCormick & Company.
In March, Unilever has 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.
In July, McCormick unveiled the planned operating structure, executive leadership team and intention to secure a secondary listing on the London Stock Exchange for the combined business.
The transaction excludes Unilever's food business in India and remains subject to shareholder and regulatory approvals, with completion targeted by mid-2027.
The CMA is expected to announce its decision whether to refer the merger for an in-depth, phase 2 investigation by 11 November.