UK Competition Regulator Reviews $65B Unilever and McCormick Food Merger
Overview of the Unilever and McCormick Merger Investigation
Sept 16 (Reuters) - Britain's competition regulator on Wednesday launched an investigation into the $65 billion merger between Unilever's foods business and U.S. spice maker McCormick to assess whether the deal could reduce competition in the UK.
Potential Impact on the Food Industry
If the deal goes through, it would create one of the world's largest flavourings and food products companies, combining household brands such as Knorr, Hellmann's, French's and Frank's RedHot as food manufacturers seek scale to offset rising costs and changing consumer demand.
Ownership Structure of the Combined Company
The deal, announced in March, will leave Unilever and its shareholders owning 65% of the fully diluted equity of the combined company, including a 9.9% stake to be held directly by Unilever, while McCormick shareholders will own the remaining 35%.
Regulatory Timeline and Responses
The Competition and Markets Authority has set a Nov. 11 deadline for its Phase 1 decision.
McCormick and Unilever did not immediately respond to Reuters requests for comment.
(Reporting by Atharva Singh and Ankita Bora in Bengaluru; Editing by Sonia Cheema)
