Unilever could finalise a $15.7bn deal with McCormick to spin off its food brands, forming a new $60bn entity with Unilever holding a 65% stake.
LONDON: Unilever is on the verge of a multibillion-dollar deal to spin off the majority of its food business.
The British consumer goods giant said it could agree a deal with US spices maker McCormick & Company within hours.
The proposed transaction would see McCormick pay $15.7 billion in cash plus shares to form a new combined group reportedly worth $60 billion.
“Upon completion of the transaction, it is expected that Unilever and its shareholders would hold 65% of the combined company,” Unilever stated.
It added that “it is possible that an agreement could be concluded today”.
The combination would exclude Unilever’s food business in India.
Unilever’s food portfolio includes brands like Hellmann’s mayonnaise and Knorr seasonings.
McCormick’s brands include Schwartz seasonings and Ducros herbs, with the company reporting 2025 sales of about $7 billion.
This move aligns with Unilever’s strategy to prioritise its personal care and beauty divisions, which include Dove soap and Cif cleaner.
The company spun off its ice cream division, housing Magnum and Ben & Jerry’s, last year.
Chief executive Fernando Fernandez, who took over in 2025, has focused on growing sales in the United States and India.
Unilever posted a small rise in annual profits last year to 5.7 billion euros ($6.5 billion).
