March 19 (Reuters) - Unilever is in talks to separate its food business and combine it with spice maker McCormick in an all-stock deal which could come within weeks, the Wall Street Journal reported
Unilever in talks to combine food business with McCormick, WSJ reports
Potential Merger and Industry Implications
Overview of the Reported Deal
March 19 (Reuters) - Unilever is in talks to separate its food business and combine it with spice maker McCormick in an all-stock deal that could come within weeks, the Wall Street Journal reported on Thursday, citing sources.
Brands Involved in the Potential Merger
A deal, if it succeeds, could bring brands such as Unilever's Hellmann's mayonnaise and Maryland-based McCormick's iconic Cholula hot sauce under one roof.
Verification and Company Responses
Reuters could not immediately verify the report. The companies did not immediately respond to Reuters requests for comment.
Unilever's Strategic Moves
Separation of Food Assets
Unilever has been weighing a broader separation of its food assets, several news outlets reported this week, as the consumer goods maker plans to streamline its business.
Previous Considerations and Portfolio Streamlining
Last year, Reuters reported that the Dove soap maker was considering selling British brands including Marmite, Colman's and Bovril to streamline Unilever's portfolio and focus on beauty and wellbeing.
Market Context and Financials
Challenges Facing Food Companies
Food companies have been struggling with weak demand as budget-conscious consumers cut back on spending and opt for cheaper store brands, while the rising adoption of weight-loss drugs has also curbed overall consumption.
Company Valuations
McCormick, which in January forecast weak profit for 2026 due to higher tariff-related costs, has a market value of around $14.51 billion, while London-based Unilever is valued at more than $134 billion, according to LSEG-compiled data.
Other Industry Talks
Unilever and Kraft Heinz Discussions
The Financial Times reported on Wednesday that Unilever and Kraft Heinz had recently held talks over a potential merger of parts of their food businesses, but those discussions have since ended.
Reporting Credits
(Reporting by Fabiola Arámburo and Mrinmay Dey in Mexico City; Editing by Shailesh Kuber and Alan Barona)
