Unilever has confirmed receipt of an inbound offer from McCormick for its foods division and is engaged in active discussions, though there is no guarantee a deal will close. The proposed transaction is expected to include both cash and stock to bridge the valuation gap between the two businesses.

Unilever’s foods business posted €12.9 billion in revenue and €2.9 billion in operating profit in 2025, underpinned by flagship brands like Hellmann’s, Knorr and Marmite. Analysts estimate the unit could fetch tens of billions of euros, making it one of the sector’s largest potential deals.

Divesting the foods division would allow Unilever to focus on higher-growth, higher-margin segments such as beauty and personal care, where it sees stronger pricing power and premiumization trends. The sale proceeds would bolster Unilever’s financial flexibility for bolt-on acquisitions and share buybacks.

For McCormick, acquiring Unilever’s foods unit would expand its global footprint in condiments and cooking products, particularly in emerging markets where Unilever has robust distribution. The combination is expected to deliver cost synergies and accelerate McCormick’s growth trajectory on a larger scale.