March 30 (Reuters) - Unilever is in advanced talks to combine its food business with U.S. spice maker McCormick, in a deal that includes a cash component of around $16 billion, the Wall Street Journal
Unilever-McCormick potential food unit deal includes $16 billion cash component, WSJ reports
Details and Implications of the Unilever-McCormick Deal
Deal Structure and Financial Terms
March 30 (Reuters) - Unilever is in advanced talks to combine its food business with U.S. spice maker McCormick, in a deal that includes a cash component of around $16 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Announcement Timeline
A cash-and-stock deal could be announced as soon as Tuesday, when McCormick is set to report its first-quarter results, according to the report.
Company Responses
Unilever and McCormick did not immediately respond to Reuters' requests for comment.
Market Reaction and Shareholder Impact
Stock Performance
Shares of McCormick jumped about 4% in extended trading following the report.
Shareholder Benefits and Tax Structure
Majority Stake and Tax Advantages
The proposed combination would offer the British group's shareholders a majority stake in the new entity and tax benefits, and would be arranged like a so-called reverse Morris trust (RMT), which saves on taxes, Reuters reported last week.
(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D'Silva)
