The Wall Street Journal reported on Thursday that London-based Unilever is in discussions to separate its food division and combine that business with U.S. spice maker McCormick & Company in an all-stock transaction. People familiar with the matter told the newspaper that, if talks proceed as currently framed, a deal could be completed within weeks.
Under the proposal cited by the report, Unilever would spin out its food unit - the segment that includes consumer names such as Knorr and Hellmann’s - and merge it with McCormick. The food division could be worth tens of billions of dollars in such a transaction, according to the description in the report.
By comparison, McCormick’s market capitalisation sits at about $14.8 billion, while Unilever’s market value is roughly $140 billion, the report said. The envisioned all-stock structure would transfer ownership stakes rather than rely on cash consideration.
A separation of the food arm would leave Unilever more narrowly focused on beauty, personal care and home products. The report framed that outcome as consistent with a broader pattern among diversified consumer conglomerates opting to streamline and concentrate on fewer core categories.
The report also noted prior signs that Unilever has been exploring strategic options for its food business. It mentioned activist investor Nelson Peltz, who joined Unilever’s board in 2022 and has a track record of advocating corporate restructurings.
No additional timelines, price tags, or definitive agreements were provided in the report beyond the possibility that negotiations could conclude within weeks if discussions hold. Observers interested in valuation comparisons and the implications for brand portfolios would likely watch any formal announcements closely.
Contextual note - The details above reflect the account in the report and the statements attributed to people familiar with the discussions. The report characterized the transaction as potentially transformative for Unilever’s corporate shape, but it did not provide final terms or confirmations of an executed deal.