Unilever will combine most of its food business with McCormick in a $44.8 billion transaction, receiving $15.7 billion in cash and $29.1 billion in McCormick shares. Unilever and its shareholders will own a 65% stake in the new global seasonings, sauces and condiments company.

The merger creates a standalone food entity with about $20 billion in revenue, allowing Unilever to streamline its portfolio toward beauty, personal care and wellbeing. McCormick gains control of leading brands like Hellmann’s and Knorr, positioning itself for growth in sauces and flavorings.

Shares of both companies declined following the announcement as investors weighed high leverage, the extended timeline to a 2027 close, and potential sell-pressure from European shareholders in the U.S.-listed entity. Analysts questioned whether partial ownership of the division in a leveraged combined company offsets integration complexity and shareholder returns.