Unilever in Talks to Sell Iconic Food Brands to McCormick in Major Deal
Unilever is in advanced talks to sell parts of its food division to McCormick, a major US spice and seasoning producer. The deal could involve well-known brands like Knorr, including bouillon and seasoning products, as well as other labels such as Amora, Maille, and Hellmann's in the foodservice sector. If successful, the merger would reshape Unilever's business focus while giving its shareholders a controlling stake in the new entity. The proposed transaction centres on Unilever's food brands, particularly those under Unilever Food Solutions (UFS). Key products include Knorr Rindsbouillon, along with other bouillon and seasoning lines, as well as condiments like Tabasco, Maïzena, and Maille. The deal could see Unilever's food division spun off entirely before merging with McCormick, allowing the company to streamline its operations.
Negotiations have reportedly accelerated in recent weeks, though neither company has confirmed details. Under the current terms, Unilever's shareholders would hold over 50 percent of the newly formed company. The move aims to avoid losing control of the division while minimising capital gains taxes.
The timing comes as Unilever's share price has fallen sharply, dropping more than 15 percent in the past month to €51.94. Broader market pressures, including instability from the Iran conflict, have added strain to food industry stocks. Despite the urgency, analysts caution that discussions could still break down without a final agreement. A successful deal would let Unilever shift its focus toward beauty and personal care, moving away from legacy food businesses. The transaction's structure—spinning off the division before merging—would also help retain shareholder influence. No financial figures have been released, and both companies have declined to comment on ongoing negotiations.
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