- Unilever has agreed to merge its food business with US rival McCormick in a £33.8 billion deal, creating a significant global food giant.
- The agreement involves Unilever receiving approximately £11.9 billion in cash upfront and equity in McCormick, while retaining a 65% stake in the new Unilever Foods business.
- The combined entity will bring together iconic brands such as Unilever’s Hellmann’s and Marmite with McCormick’s French’s mustard and Schwarz, with the deal expected to complete by mid-2027.
- Unilever's CEO, Fernando Fernandez, stated the merger aims to unlock value and create a focused, high-quality business with significant growth potential, also anticipating around £453.2 million in annual cost efficiencies.
- This strategic move follows Unilever's recent spin-off of its ice cream business and sales of other food brands, allowing it to focus on its beauty, personal, and home care labels, alongside a temporary freeze on recruitment due to the uncertain global environment.
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