Unilever, McCormick Combine Food Units for $15.7 Billion Cash

is in advanced discussions to combine its food business, excluding its Indian operations, with spice-maker McCormick & Co. in a deal valued at approximately $60 billion including debt, involving $15.7 billion in upfront cash and a majority stake for Unilever shareholders.

Unilever confirmed these advanced discussions following recent media speculation, as reported by RTTNews on March 31, 2026. The proposed transaction involves McCormick equity as the majority consideration, which will result in Unilever and its shareholders holding 65% of the newly combined company.

This strategic move is structured as a Reverse Morris Trust, specifically intended to be tax-free for US federal income tax purposes for Unilever and its shareholders. Both Unilever (UL, ULVR.L) and McCormick (MKC) shares reacted positively to the news in overnight trading, with Unilever gaining around 1.7% to $61.01 and McCormick gaining 3.3% to $55.49.

The companies anticipate finalizing the agreement soon, establishing a significant new entity in the global food industry.