McCormick down after UK competition concerns on $65 billion deal with Unilever
UL•McCormick shares slipped 1.4% after Britain’s competition watchdog told McCormick and Unilever to address concerns over recipe mixes and sauces or face an in-depth investigation of their planned $65 billion deal. The companies can offer remedies before November 18.
1. UK competition concerns
Britain’s Competition and Markets Authority told McCormick and Unilever they must address competition concerns in recipe mixes and sauces or face an in-depth investigation of their planned $65 billion food deal. The companies can offer remedies before November 18 to avoid the detailed investigation; the regulator could then clear the deal subject to remedies such as asset sales, or block it.
2. Regulatory backdrop
The deal cleared a key U.S. regulatory hurdle last month, according to Federal Trade Commission records. GlobalData managing director Neil Saunders said the market landscape differs because there is more competition for dry ingredients in the United States than in the United Kingdom, adding that further U.S. hurdles are unlikely.
