US condiment giant McCormick has said it will seek a secondary share listing in London after agreeing to merge with Unilever’s food business in a £33.8 billion deal.
The move will mark a welcome boost for London’s equity markets, which have recently witnessed a dearth of listings and a raft of international takeovers to take firms private.
On Thursday, the company behind French’s mustard and Frank’s Red Hot sauce said it plans to admit shares on the London Stock Exchange.
The Maryland-based company said it will retain its main listing on the New York Stock Exchange but hopes the secondary listing will boost capital flows and improve liquidity for shareholders.
Brendan Foley, chairman, president and chief executive of McCormick, said: “This, in combination with our International Headquarters and commitment to Unilever’s world-leading R&D facilities in the Netherlands and our global headquarters in Hunt Valley, Maryland, reinforces the global nature of the combined operations and positions us for ongoing success.”
The listing plan comes after McCormick agreed the deal to buy Unilever’s food arm, including brands such as Hellmann’s, Marmite and Colman’s, in March.
Unilever will receive about 15.7 billion dollars (£11.9 billion) of cash upfront and equity in McCormick as part of the deal.
Unilever and its shareholders will also retain a 65% stake in the Unilever Foods business, with Unilever shareholders owning 55.1% of the business and the Unilever itself retaining a 9.9% stake.
The move is expected to complete around the middle of 2027.
The combined company said it hopes to secure around 600 million dollars (£453.2 million) of cost efficiencies each year as a result.
McCormick said it plans to reorganise its operations into four divisions after the deal completes: Americas consumer, international consumer, global food service and global flavour.
It comes days after the UK competition watchdog, the Competition and Markets Authority (CMA), said it was seeking views over the deal.
Read MoreNational Portrait Gallery forced to close after ‘unexpected’ issue
How drones and e-bikes helped slash crime across London
Lloyd’s of London says former boss breached rules over ‘close’ relationship