UK watchdog demands competition remedies in $65 billion Unilever-McCormick food deal
UL•Britain’s competition watchdog gave Unilever and McCormick until November 18 to address concerns about dry ingredient mixes and dry sauces or face an in-depth investigation of their planned $65 billion deal. Unilever said it had decided to sell the Colman’s brand and assets to address potential concerns.
1. CMA sets deadline
The Competition and Markets Authority said the companies could offer remedies by November 18 to avoid an in-depth review, which could clear the deal, clear it subject to remedies such as asset sales, or block it. The watchdog’s initial review raised concerns about competition in dry ingredient mixes and dry sauces supplied to UK retailers.
2. Brands and proposed sale
McCormick sells dry ingredient mixes and sauces under the Schwartz brand, while Unilever sells dry sauces and meal mixes under Knorr, Maille and Colman’s. The CMA said Nestle’s Maggi, Premier Foods’ Bisto and supermarket own-brands offered only limited competition in the markets. It found no concerns over mustard, concluding that English, French and American-style mustard are separate markets. Unilever said discussions with potential buyers for the Colman’s brand and assets were progressing well, and McCormick said it was working constructively with the CMA.
