March 20 (Reuters) – Unilever is in talks to sell its food business to smaller rival McCormick & Company, a potential deal that would unite the British company’s Hellmann’s and Knorr brands with the U.S. condiment maker’s Cholula hot sauce.
London-listed Unilever said on Friday it had received an offer from McCormick, while McCormick confirmed it was engaged in discussions with Unilever regarding a possible strategic transaction involving the food business.
Unilever shares opened up around 1%.
The talks mark a possible acceleration of Unilever Chief Executive Fernando Fernandez’s plan to move Unilever into the beauty and personal care categories, following the spin-off of its ice cream business last year.
Unilever’s food business represented around a quarter of its total sales in 2025, generating more than 12.9 billion euros ($14.91 billion) last year.
But the sector is facing difficulties due to the trend away from processed foods. Politicians, including U.S. Secretary of Health Robert F. Kennedy Jr., have warned about the health risks associated with these products, and many consumers are turning to GLP-1-based weight-loss medications, causing people to eat less.
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Barclays analysts estimated the enterprise value of Unilever’s food division, which has been growing more slowly than the company’s overall business, at between €28 billion and €31 billion.
McCormick’s market capitalization is about $14.5 billion, much smaller than the potential value of Unilever’s food business. Unilever’s market capitalization is around $136 billion.
The two companies said there was no certainty a deal would be reached. They did not provide financial details.
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