UK’s CMA opens probe into $65B McCormick-Unilever merger

Britain's Competition and Markets Authority on Wednesday launched a Phase 1 investigation into the $65 billion merger between McCormick ↘ 1.97% & Company and Unilever's ↘ 0.64% foods business, adding a regulatory hurdle to one of the largest deals in the consumer packaged goods sector.reuters+1

The watchdog said it would assess whether the planned combination could reduce competition in UK markets, setting a November 11, 2026, deadline for its initial decision.aol+2

A "Global Flavour Powerhouse"

The deal, announced in March 2026, would bring together household brands including Knorr, Hellmann's, French's, and Frank's RedHot, creating one of the world's largest flavourings and food products companies as manufacturers seek scale to offset rising costs and shifting consumer demand.aol+1

Under the agreed terms, Unilever and its shareholders would retain 65% of the fully diluted equity of the combined company, including a 9.9% stake held directly by Unilever, while McCormick shareholders would own the remaining 35%. The transaction is structured as a reverse Morris trust, with closing targeted for mid-2027 pending regulatory approvals. Certain Unilever food operations in India, Nepal, and Portugal are excluded from the deal.globalbankingandfinance+2

Unilever CEO Fernando Fernandez said in March that by "combining Unilever Foods' iconic leading brands and global reach with McCormick's exceptional portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top line growth and value creation potential".esmmagazine

Market Reaction and Deal Risk

McCormick shares fell in the session preceding the announcement, while Unilever traded slightly lower in premarket hours on Wednesday. Analysts at MarketBeat have a consensus Hold rating on McCormick with an average price target of $60.00.gurufocus+1

The CMA said it had previously received the information required to begin its pre-notification process and invited interested parties to submit comments between July 21 and August 5. Neither McCormick nor Unilever immediately responded to Reuters' requests for comment.reuters+3

What Comes Next

The Phase 1 review will determine whether the merger raises competition concerns serious enough to warrant a more detailed Phase 2 investigation, which could extend the regulatory timeline. The probe represents the first major antitrust test for a deal that would reshape the global packaged food landscape, with the outcome likely to influence whether other jurisdictions follow suit with their own scrutiny.