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Unilever PLC (LSE:ULVR) is in discussions to separate its food business and combine it with McCormick & Company Inc (NYSE:MKC) in a potential all-stock transaction, according to a Wall Street Journal report.Both companies confirmed the talks on Friday, a day after the Journal first reported the development, while cautioning that negotiations are ongoing and no agreement has been finalized.
Citing people familiar with the matter, the Wall Street Journal reported that the proposed deal would involve spinning off Unilever’s food division and merging it with US-based spice maker McCormick.
The structure would allow Unilever shareholders to retain a significant stake in the combined entity, rather than pursuing a traditional outright sale.
The Journal added that a transaction could be announced within weeks if discussions progress, though it emphasized there is no guarantee a deal will be reached.
Unilever’s food portfolio includes brands such as Hellmann’s mayonnaise and Knorr bouillons and seasonings, and could be valued at tens of billions of dollars. By comparison, McCormick has a market capitalization of roughly $14.8 billion, while Unilever’s overall market value is about $140 billion.
The reported move aligns with a broader shift among large consumer goods companies toward simplifying their portfolios.
Unilever’s US-listed shares were 1% higher following the report, while McCormick was down 1.3%.