Unilever eyes landmark deal with McCormick on $60bn food empire<\/figcaption><\/figure>\n<\/div>\nUnilever is on the verge of striking a landmark deal with spice maker McCormick with the aim of combining their food businesses. <\/p>\n
The proposed deal is valued at approximately $15.7 billion in cash. The transaction is expected to be structured as a reverse Morris Trust, a strategic move designed to maximize tax efficiency. This process will involve two stages. <\/p>\n
In the first phase, Unilever will separate its food business into a standalone entity and in the next phase the company will merge it with McCormick. <\/p>\n
Under the current terms, Unilever shareholders will take a majority stake of 65 percent in the newly combined food and space giant. The move will bring in significant cash and ensure that its investors retain primary control over the future growth of the merged business.<\/p>\n
However, the proposed merger of its food business will lead to the exit of Unilever’s operations in India.<\/p>\n
“Work is continuing to agree and finalize the transaction and it is possible that the agreement could be concluded today, although there can be no certainty that the transaction will be agreed,” Unilever said in a statement.<\/p>\n
After the signing of this much-anticipated deal, the valuation of the Unilever food business will reach 28-31 billion euros, as predicted by analysts at Barclays. <\/p>\n
The deal also highlights the potential structure of Unilever under the leadership of Fernando Fernandez, who takes over as CEO in March 2025. <\/p>\n
The deal follows a historic year for Fernandez, which has been defined by the successful spin-offs and public listings of Unilever’s ice cream division, including Magnum and Ben & Jerry’s. <\/p>\n<\/p><\/div>\n