McCormick Unilever Agree $44.8 Billion Food Deal

NEW YORK, United States — McCormick and Unilever said they have agreed to combine most of Unilever’s foods business with McCormick in a cash-and-stock transaction that values the contributed unit at about $44.8 billion, according to PR Newswire, Reuters, CNBC, The Guardian, Food Dive, and The Associated Press. Each of the bullet points immediately below have been confirmed by at least four of the six respected sources we curated on this story.

• McCormick and Unilever announced an agreement to combine McCormick with most of Unilever Foods, creating a larger global flavor and condiments company under the McCormick name.
• The transaction terms include $15.7 billion in cash and equity issuance that gives Unilever and its shareholders 65% of the combined fully diluted equity, while McCormick shareholders hold 35%; Unilever is expected to retain a 9.9% stake at close.
• The deal values the contributed Unilever Foods business at approximately $44.8 billion, widely reported as about $45 billion.
• The companies said closing is targeted for mid-2027, subject to shareholder votes, regulatory approvals, and other customary closing conditions.
• The carve-out excludes certain assets, including Unilever food operations in India and select other markets and product lines.
• Both companies said the combination is expected to deliver about $600 million in annual run-rate cost synergies by year three.

Additional Details Reported

Why each company says the combination fits

McCormick framed the deal as a way to accelerate growth in flavor categories and expand global distribution, while Unilever described it as part of a broader portfolio shift toward faster-growing personal care, beauty, and home-care segments, according to PR Newswire, The Associated Press, and The Guardian.

Reuters separately reported that the proposed structure is a Reverse Morris Trust, a format the companies said is designed to reduce U.S. federal tax friction for Unilever and its shareholders in the separation-and-combination process.

Integration and governance details

McCormick said it would keep its global headquarters in Hunt Valley, Maryland, while adding an international headquarters in the Netherlands, with executives from both companies expected in the leadership structure. Public disclosures also said Unilever would appoint four of 12 board members of the combined company.

Market reaction and execution risk

Early market reaction was cautious, with coverage from CNBC, The Guardian, and The Associated Press noting share declines after the announcement even as management teams emphasized long-term integration benefits.

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