Finance
Unilever Nears Deal to Combine Food Unit With McCormick, Wsj Reports
Published by Global Banking & Finance Review®
Posted on March 30, 2026
1 min readLast updated: March 30, 2026
Add as preferred source on GoogleQuick Summary
Unilever is in advanced talks to combine its food division with McCormick in a deal potentially valued at around $16 billion in cash, though the full equity valuation could exceed $30 billion, possibly via a tax‑efficient reverse Morris Trust structure giving Unilever shareholders control of the com
Unilever-McCormick potential food unit deal includes $16 billion cash component, WSJ reports
Details and Implications of the Unilever-McCormick Deal
Deal Structure and Financial Terms
March 30 (Reuters) - Unilever is in advanced talks to combine its food business with U.S. spice maker McCormick, in a deal that includes a cash component of around $16 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Announcement Timeline
A cash-and-stock deal could be announced as soon as Tuesday, when McCormick is set to report its first-quarter results, according to the report.
Company Responses
Unilever and McCormick did not immediately respond to Reuters' requests for comment.
Market Reaction and Shareholder Impact
Stock Performance
Shares of McCormick jumped about 4% in extended trading following the report.
Shareholder Benefits and Tax Structure
Majority Stake and Tax Advantages
The proposed combination would offer the British group's shareholders a majority stake in the new entity and tax benefits, and would be arranged like a so-called reverse Morris trust (RMT), which saves on taxes, Reuters reported last week.
(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D'Silva)
Key Takeaways
- •The proposed deal could value Unilever’s food business at €28–29 billion (about $32–33 billion), dwarfing McCormick’s ~$14–16 billion market cap (foodbusinessnews.net).
- •Under the likely Reverse Morris Trust structure, Unilever shareholders would receive a majority stake (50–60%) in the merged company and benefit from tax advantages (markets.financialcontent.com).
- •The merger would create a global condiments and flavors powerhouse, combining Unilever brands like Hellmann’s, Knorr and Marmite with McCormick’s portfolio including French’s, Frank’s RedHot and Cholula (fooddive.com).
References
Frequently Asked Questions about Unilever nears deal to combine food unit with McCormick, WSJ reports
1What companies are involved in the food unit combination deal?
Unilever and U.S. spice maker McCormick are involved in the advanced talks to combine their food businesses.
2How much is the Unilever and McCormick deal worth?
The deal reportedly includes a cash component of around $16 billion.
3Who reported the Unilever-McCormick merger talks?
The Wall Street Journal reported on the deal, citing people familiar with the matter.
4What is the current status of the Unilever and McCormick talks?
Unilever is in advanced talks with McCormick, but the deal has not yet been finalized.
