Anglo-Dutch consumer goods giant Unilever is engaged in talks with U.S. food company McCormick for an all-stock takeover of Unilever’s food business. File Photo by John Angelillo/UPI | License Photo
Anglo-Dutch multinational consumer goods manufacturer Unilever moved Friday to end media speculation over the future of its food business, confirming that Maryland-headquartered McCormick & Co. Inc. had made an acquisition offer.
Unilever said in a news release that it was in discussions with McCormick after receiving “an inbound offer” from the American spices and seasonings firm but stressed “there can be no certainty that any transaction will be agreed.”
“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,” the company added.
The transaction under discussion was an all-stock deal that would allow Unilever to concentrate on its personal care products business, in line with comments by CEO Fernando Fenandez in July that the firm wanted to move away from food in favor of “more beauty, more wellbeing, more personal care.”
Analysts said market speculation had been rife prior in the days leading up to the announcement.
“Unilever sprung to life as talk about selling its food brands intensified. The market has been awash with rumours all week and hearsay has now switched to confirmation, with McCormick named as an interested suitor,” said AJ Bell’s investment director, Russ Mould.
The 95-year-old company, maker of Dove, Hellmann’s and Knorr among its brands, is valued at more than $133 billion, with a potential price tag of tens of billions for its food division which competes with the likes of Kraft, Nestle and PepsiCo.
McCormick, maker of French’s mustard and Cholula hot sauce, is much smaller, worth around $15 billion.
Unilever reported slightly improved profits of $6.8 billion for 2025, Fernandez’s first full year at the helm after serving as the firm’s chief financial officer. Fenandez delivered the additional profit despite lower revenue amid global restructuring that saw a third of jobs, 7,500, axed
Unilever has been divesting the food side of its portfolio for the past 10 years, culminating in February 2025 with it listing its ice cream business, including Ben & Jerry’s, on the Amsterdam Stock Exchange, with secondary listings in New York and London.
Its main competitors in its new guise going forward were likely to be the big global players in personal care and beauty including L’Oreal, Beiersdorf and Estee Lauder.
Historic March moments through the years
Founder of the Women’s Tennis Association and tennis great Billie Jean King (C) smiles with representatives after speaking during an annual Women’s History Month event in celebration of the 50th anniversary of Title IX in Statuary Hall at the U.S .Capitol in Washington on March 9, 2022. Women’s History Month is celebrated every March. Photo by Bonnie Cash/UPI | License Photo
