Unilever has agreed a deal with McCormick that will combine Unilever’s foods businesses with the US-based firm.

The move, which includes an upfront cash component of $15.7bn (£11.9bn) and the majority of the consideration in McCormick equity, will take Unilever’s stake in the new combined business to 65%.

Unilever had confirmed this morning it was in “advanced discussions” with US-based McCormick over a potential merger of its food business, suggesting it was possible that an agreement could be concluded today, following an approach by McCormick on 20 March.

The FTSE 100 company described the deal as a decisive step to “reshape Unilever into a simpler, sharper, higher growth company”, and called McCormick a “natural home for Unilever Foods”, given the cultural alignment between the two companies.

The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods.

“This transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a €39bn pureplay HPC company with a proven sector-leading growth profile,” Unilever CEO, Fernando Fernandez, commented.

“By combining Unilever Foods’ iconic leading brands and global reach with McCormick’s exceptional portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top line growth and value creation potential.”

McCormick CEO, Brendan Foley, added: “The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. Together, we will be better positioned to accelerate growth in attractive categories.

“This combination will create a diversified flavour leader with a robust growth profile that remains differentiated by its focus on flavouring calories while others compete for them.”

Unilever is expecting completion of the deal by mid-2027, subject to McCormick shareholder approval, receipt of required regulatory approvals and the satisfaction of other customary closing conditions.

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