Pressure Across Staples. Why Deutsche Bank Still Upgraded Unilever (UL)

Unilever reported €13.3bn turnover, driven by strong growth in power brands, acquisitions, and currency impact. Q3 turnover increased 6.7%, with a 2.7% rise over nine months compared to 2025, and most sectors performed well, according to the company.

The UK's Competition and Markets Authority (CMA) is investigating a $65 billion merger between Unilever and McCormick, citing potential competition concerns in dry cooking mixes and sauces. The companies have until November 18 to address these issues or face a deeper review. The deal, valued at $44.8 billion for Unilever's foods business, would create a global flavor company with $20 billion in annual revenue.

UK's CMA says McCormick's (MKC) deal with Unilever (UL) may reduce competition in dry recipe mixes and sauces. Companies have until November 18 to propose remedies. Unilever is selling Colman's to address concerns. Deal values Unilever Foods at $44.8B, with $20B combined sales. McCormick expects $600M in annual cost savings.

The UK's Competition and Markets Authority (CMA) has raised concerns about Unilever's $65 billion food deal with McCormick, citing potential competition issues in recipe mixes and sauces. The companies must address these concerns by November 18 to avoid an in-depth investigation. Unilever and McCormick are working with the CMA to find a suitable remedy. The deal aims to create a company worth around $65 billion, combining Unilever's food business with McCormick's spice and sauce products.

Deutsche Bank upgraded Unilever (UL) to Buy, raising its price target to 5,350 pence. The bank cites Unilever's defensive qualities, growth prospects, and operational improvements. Unilever reported 5.2% underlying sales growth in Q3 and aims for 1 billion in savings by 2029. Deutsche Bank forecasts 4.6% and 4.2% growth for 2027 and 2028, respectively, with margin improvements. The bank sees potential upside of 8.5% from current London share prices.

UK's CMA gave Unilever (UL) and McCormick (MKC) until Nov. 18 to address competition concerns over their $65B food merger or face a deeper probe. The regulator found the deal could reduce competition in dry ingredient mixes and sauces. Both companies are cooperating. McCormick shares fell 2.1% in London trading. The merger, expected to close mid-2027, would create a $65B company with $600M in annual cost synergies.