Unilever says nears deal to merge Foods unit with McCormick

Unilever is in advanced talks to combine its foods business with McCormick in a transaction that would include about $15.7 billion of upfront cash with the majority of consideration in McCormick equity. If completed, the deal would be a sizable sector M&A likely to materially reshape Unilever's food portfolio, dilute/alter McCormick equity ownership and attract regulatory/antitrust review, creating notable stock movement for both companies.

Analysis

Unilever is in advanced talks to combine its foods business with McCormick in a transaction that would include about $15.7 billion of upfront cash with the majority of consideration in McCormick equity. If completed, the deal would be a sizable sector M&A likely to materially reshape Unilever's food portfolio, dilute/alter McCormick equity ownership and attract regulatory/antitrust review, creating notable stock movement for both companies.