UK regulators scrutinize $65B Unilever-McCormick food merger
Article excerpt
A proposed $65 billion merger between Unilever’s food business and spice maker McCormick is coming under scrutiny by UK regulators. In a Sept. 16 announcement, the Competition and Markets Authority announced it needs more time to review whether such a tie-up would substantially lessen competition in any U.K. market. The CMA set a Nov. 11 deadline to issue its Phase 1 decision. If there are concerns, the regulator could launch a more in-depth Phase 2 investigation, according to the statement. Media representatives for Unilever and McCormick did not immediately respond to a request for comment. Under the terms of the deal announced in March, Unilever and its shareholders would own 65% of the combined company, while McCormick shareholders would own the remaining 35%. The companies are targeting completion in mid-2027, subject to regulatory clearances and other closing conditions. If the transaction goes through, it will create one of the world’s largest flavorings and food products companies. After the $100 billion merger that created Kraft Heinz in 2015, the Unilever-McCormick deal would rank as the second-largest food transaction in history, Reuters noted. Considered one of the largest consumer packaged goods companies in the world, Unilever’s portfolio includes powerhouse brands like Dove soap, Axe body care and Vaseline petroleum jelly. Unilever moved its North American...
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Additionally, McCormick will also create a secondary listing in Europe and establish an international headquarters in the Netherlands where Unilever has had a long-standing presence, the companies said.
