economy
Marmite maker Unilever agrees $44.8bn deal to combine food arm with McCormick
Core focus will be on beauty, personal care and home products after spinning off brands such as Hellmann’s and Pot Noodle
TL;DR
- Unilever is merging its food business with US-based McCormick for $44.8bn.
- Unilever will hold a 65% majority stake in the combined food entity.
- The new company will be named McCormick and retain its US headquarters.
- Unilever will focus on beauty, personal care, and home products post-deal.
- The merger is expected to yield $600m in annual cost savings.
- The deal is structured as a Reverse Morris Trust for tax efficiency.
- Unilever's shares dropped nearly 7% following the announcement.