McCormick-Unilever global food business deal under review in Australia

McCormick & Company (MKC) shares rose 2% premarket after Q2 earnings beat expectations, with net sales of $1.94B and EPS of $0.80. CEO Foley cited margin strength despite inflation and Middle East conflict costs, reaffirming 2026 guidance for 13-17% sales growth and EPS of $3.05-$3.13.

In 2026, major US business deals included SpaceX's $250B merger with xAI, valuing the combined entity at $1.25T; Paramount's $110B acquisition of Warner Bros. Discovery; SpaceX's $60B acquisition of AI startup Cursor; Devon Energy and Coterra Energy's $58B merger; and Unilever's $66B merger with McCormick. Some deals faced regulatory scrutiny and shareholder concerns.

Unilever agreed, according to Reuters citing a memo, to protect employment terms for workers in its European and UK food business for two years after its planned merger with US spice maker McCormick. The protection is set to run until at least mid-2029. The deal, agreed in March, values Unilever’s Food unit at about $44.8B and the combined entity at about $65B, expected to close mid-2027 subject to approvals.

Utz UTZ.N agreed to be taken private by Germany’s Intersnack Group, with Utz’s founding families, in a deal valued at nearly $3 billion, the first U.S. acquisition for Intersnack. The article cites other family-led snack deals including Ferrero’s purchases of WK Kellogg and Power Crunch, and Mars’s $36 billion take-private of Kellanova. It notes valuation multiples and potential targets.

McCormick outlined the operating structure, executive team and planned secondary listing location for its proposed $44.8 billion combination with Unilever’s Foods business. The deal would create about $20 billion in annual revenue and is subject to UK CMA review, with completion expected mid-2027. Four divisions are Americas Consumer, International Consumer, Global Food Service and Global Flavor.

McCormick said it will seek a secondary listing on the London Stock Exchange while keeping its primary listing in New York. The move follows its agreed March plan to buy Unilever’s food business for £33.8bn, expected to complete mid-2027. Unilever will receive about $15.7bn cash upfront, with cost savings of about $600m annually. The UK CMA is consulting on competition.