Unilever to merge its Foods business with McCormick in $65B deal

In short: Unilever says it will separate its Foods business and merge it with McCormick in a deal worth about $65 to $66 billion.

What happened

Unilever, a major UK-based consumer goods company, announced on March 31, 2026 that it has agreed to separate its Foods business and combine it with McCormick. Unilever’s Foods unit includes well known brands like Knorr and Hellmann’s.

The companies said the transaction will be a mix of cash and shares. Reuters reported Unilever’s Foods business is valued at about $44.8 billion, while McCormick is valued at about $21 billion, putting the combined business around $65 billion. Some reports rounded that total to about $66 billion.

McCormick is a US company best known for spices and seasonings. The combined business is expected to sell products both to shoppers in stores and to large customers through industrial distribution, mainly across the US, Europe, the Middle East, and Africa.

After the announcement, McCormick shares rose about 1.22% to $53.72, while Unilever shares were little changed, up about 0.05%.

Why it matters

This deal would create a much larger packaged food company, combining Unilever’s everyday meal brands with McCormick’s flavor and seasoning products. For regular shoppers, it could eventually affect things like product choices, pricing, and how these brands are marketed, although companies typically say day to day product availability should not change immediately. The deal also shows Unilever continuing to reshape its business, after earlier merger talks with Kraft Heinz ended without an agreement.

Source: Financial Times