Unilever, the Anglo-Dutch owner of Marmite, Dove, and Hellmann’s, has confirmed it is in discussions with US-based McCormick & Company about combining its food business with the spice and seasoning maker. The talks involve an all-stock deal that would leave Unilever focused on beauty, personal care, and home products.
Unilever’s food unit, which includes brands such as Knorr, is valued at tens of billions of pounds as part of a company worth almost £100bn. McCormick, owner of brands like French’s yellow mustard, Old Bay seasoning, and Cholula hot sauce, is valued at about $15bn (£11bn). The board described the foods business as “highly attractive” but noted there is no certainty a transaction will be agreed.
The potential deal marks a strategic shift for Unilever, which has been divesting food assets over the past decade, including its spreads business in 2017, most of its tea division in 2022, and last year’s spin-off of its ice-cream unit. Chief executive Fernando Fernández has stated the company aims to derive two-thirds of revenues from beauty, wellbeing, and personal care brands like Dove, Liquid IV, and Dermalogica.
If completed, the merger would end Unilever’s near-century of competition with major food rivals such as Kraft Heinz, Nestlé, and PepsiCo, repositioning it against household and personal care companies like L’Oréal, Beiersdorf, and Estée Lauder. Unilever has ruled out further large acquisitions, focusing instead on small “bolt-on” purchases in beauty and personal care.
Shares in Unilever rose more than 1% in early trading following the announcement.
