Unilever McCormick deal scrutiny: overview
- UK regulators have launched a Phase 1 investigation into McCormick’s proposed $44.8bn acquisition of Unilever’s foods business
- The CMA is assessing whether the deal could reduce competition in key categories
- Unilever has put Colman’s mustard up for sale to help address competition concerns
- The CMA is due to make its Phase 1 decision later this year
The UK Competitions and Markets Authority (CMA) has announced that it’s investigating the anticipated acquisition of the majority of Unilever’s foods business by McCormick.
It issued an invitation to comment on the potential impact of the deal in July 2026 and has now launched a Phase 1 merger inquiry.
This comes after Unilever put its flagship mustard brand Colman’s up for sale to quell competition concerns as McCormick owns major mustard brand, French’s. Sky News reported that Rothschild bankers has been appointed to find a buyer.
The planned megamerger was announced in March 2026, and the $44.8bn sale would create “a global flavour powerhouse anchored in a portfolio of iconic brands”, according to a joint statement from the multinationals.
If the deal goes ahead, it would see famous brands such as Hellmann’s become part of McCormick’s strong condiments portfolio, which includes Cholula and Frank’s RedHot. However, Unilever is notably keeping its Lipton Ice Tea brand which is co-owned in a joint venture with PepsiCo.
Unilever’s Q2 results painted a mixed picture for its Foods business, which accounts for 25% of its turnover. It referenced its tie-up with McCormick, saying that “workstreams are underway including around carve-out financials, tax and anti-trust, synergy delivery, and integration”.
The deal has not been without controversy. Unilever has faced backlash from shareholders and former shareholder Terry Smith accused it of misleading investors.
The CMA’s Phase 1 decision will be made by November 11. If it has concerns about a substantial lessening of competition in relevant categories, it will be escalated to Phase 2, in which an independent panel of experts conducts an in-depth investigation. If not, the acquisition will be cleared.
