McCormick and Unilever reach an agreement to build a $65 billion food conglomerate

McCormick, a manufacturer of spices, will merge with Unilever’s food division. The business revealed on Tuesday that the combination will result in a firm worth roughly $65 billion. Making it the second-biggest transaction in the food industry’s history.

Following the completion of the spin-off last year of Unilever’s multibillion-dollar ice cream division. Which includes names like Ben & Jerry’s and Magnum, this transaction represents CEO Fernando Fernandez’s riskiest move since taking over in March 2025.

Despite having a strong profit margin, Unilever’s food division’s sales growth has underperformed. The company’s short-term goal of increasing overall group sales by 4% to 6% has been hindered by its personal care and beauty sectors.

Based on McCormick’s volume-weighted average share price for the previous month, which was $57.84. Unilever and its shareholders will own a 65% ownership in the merged company’s outstanding share capital, fully diluted, or $29.1 billion, according to a joint statement from the businesses.

Additionally, the British consumer products behemoth will get $15.7 billion in cash. According to the corporations, the food businesses of Unilever and McCormick are valued at approximately $45 billion and $21 billion, respectively. They stated that some assets, such as Unilever’s business in India, are not covered by the agreement.