1bn in shares from Unilever as part of the deal, multiple sources reported. The merger will leave Unilever focused on beauty, personal care, and home products. Unilever's food brands include Marmite, Hellmann's, Bovril, Knorr, Colman's mustard, and Pot Noodle.
McCormick's brands include French's mustard, Old Bay seasoning, Cholula hot sauce, and Schwartz. McCormick will have eight of twelve seats on the board of the new food business, according to a source familiar with the matter. The merger is expected to be completed by mid-2027.
Unilever confirms that it has received an inbound offer for its foods business and is in discussions with McCormick & Company.
Unilever CEO Fernando Fernandez plans to save €800m over three years and cut 7,500 jobs, including 200 managers, according to multiple reports. Unilever placed an immediate freeze on hiring due to challenges from the Middle East conflict. Unilever will face between €400m and €500m in stranded costs from the food business spin-off.
Unilever's revenue fell in the first quarter of 2026 across beauty and wellbeing (5%), home care (3%), and foods (6%). Activist investor Nelson Peltz has been pushing Unilever to streamline since taking a stake in 2022. Unilever had previously held talks with Kraft Heinz to combine food operations, according to reports.
The board believes foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the foods business as part of Unilever. There can be no certainty that any transaction will be agreed.
Unilever sold its spreads business in 2017, most of its tea business in 2022, and spun off its ice-cream division last year. Shareholders at the AGM criticized Unilever for not putting the merger to a shareholder vote. Unilever's board argued that the merger was unanimously supported and simplifies the company.
Unilever CEO said no company has held a shareholder vote on similar deals since UK listing rules changed in 2024. Unilever's sustainability commitments for the food business will ultimately be up to McCormick, according to reports. McCormick chairman has not confirmed whether UK manufacturing sites for Marmite and Colman's will remain open.
Unilever was formed in 1930 from a merger between Dutch margarine maker Unie and British soap producer Lever. Unilever CEO aims to generate two-thirds of revenues from beauty, personal care, and home brands.