McCormick and Unilever food deal faces UK competition scrutiny
MKC•UK regulator opens review of McCormick and Unilever food merger
Britain's competition regulator on Wednesday launched an investigation into the $65 billion merger between Unilever's ULVR.L foods business and U.S. spice maker McCormick MKC.N to assess whether the deal could reduce competition in the UK.
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.
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%.
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.
