McCormick Nears $60B Food Merger with Unilever Including $16B Cash
McCormick is negotiating to merge with Unilever’s $60 billion food arm in a cash-and-stock deal involving about $16 billion of cash and a reverse Morris trust. McCormick’s $14 billion market-cap company saw shares rise nearly 2% after hours and the transaction could close before markets open Tuesday.
1. Deal Overview
McCormick is in advanced talks to combine its seasonings and sauces business with Unilever’s food division, creating a new entity valued at roughly $60 billion.
2. Financial Terms
The transaction is structured as a cash-and-stock deal involving about $16 billion in cash and will employ a reverse Morris trust to maximize tax efficiency.
3. Ownership and Strategic Fit
Unilever shareholders are expected to own approximately two-thirds of the combined food arm, while McCormick shareholders will hold the remaining stake, aligning their complementary product portfolios such as Knorr, Hellmann’s, Cholula and French’s.
4. Market Reaction and Outlook
McCormick’s shares rose nearly 2% in after-hours trading following the news, and the deal could be finalized before markets open Tuesday as both firms address inflationary pressures and shifting consumer trends.