Unilever eyes $60B food empire in landmark deal with McCormick

Unilever has edged closer to make a landmark deal with spice maker McCormick, aiming to combine its food business.

The proposed deal is valued at approximately $15.7 billion in cash. The transaction is expected to be structured as a Reverse Morris Trust, a strategic move designed to maximize tax efficiency. The process would consist of two steps.

In the first step, Unilever will separate its food business into a standalone entity and in the next step the company will merge it with McCormick.

Under the current terms, Unilever shareholders would take a majority 65 percent stake in the newly combined food and space giant. This move will inject significant cash while ensuring its investors retain primary control over the future growth of the merged business.

However, the proposed merger of its food business would exclude Unilever’s operations in India.

"Work ​remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded today, ⁠although there can be no certainty that a transaction will be agreed," Unilever said in a statement.

After locking this highly-anticipated deal, Unilever food business’ valuation would reach 28-31 billion euros as predicted by analysts at Barclays.

The deal also highlights Unilever’s potential structuring under the leadership of Fernando Fernandez, who took the position of CEO in March 2025.

The deal also follows a landmark year for Fernandez, defined by the successful spin-off and public listing of Unilever’s ice cream division, including Magnum and Ben & Jerry’s.