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Unilever, McCormick in $45-billion merger deal, Indian unit excluded
- IBJ Bureau
- Apr 01, 2026
McCormick will buy a major part of Unilever’s food business for a combination of cash and equity.
The deal values the Unilever unit at nearly $45 billion, the two food companies have announced.
The merger with McCormick does not include Unilever’s food businesses in India, Nepal and Portugal.
US food company McCormick will pay $15.7 billion in cash to purchase most of the UK’s Unilever Foods’ portfolio, including Hellmann’s mayonnaise and the UK’s top-selling Marmite.
Following the transaction of the equity component, Unilever’s shareholders will own 55.1 per cent of the combined company, while Unilever will hold a 9.9 per cent stake.
The deal will add billions of dollars in annual sales for McCormick and expand the spice giant’s portfolio further into spreads and condiments.
The American food company already owns Frank’s RedHot and Cholula hot sauces and French’s mustard and mayonnaise.
About 70 per cent of Unilever Foods’ sales come from Hellmann’s and Knorr, a food brand known for its seasonings, stock cubes and soups.
For Unilever, divesting much of its food business allows the company to focus on its personal-care segment, which is growing faster.
Last December, Unilever had spun off its ice cream business, now trading separately as Magnum Ice Cream Co.
The two companies expect the deal to close in mid-2027, pending shareholders’ and regulatory approval.
“This is a combination of two companies, already with the support and the discipline and the knowledge of running the business, coming together to execute this integration,” McCormick CEO Brendan Foley has said at a joint investors’ call with Unilever.
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