LONDON, March 25, 2026, 13:45 GMT
Unilever shares lagged a rising FTSE 100 on Wednesday even with fresh broker support, a sign investors are still uneasy about the group’s plan to reshape its food business. The stock was down 0.25% at 4,515 pence on delayed quotes at 13:28, while the blue-chip index was up 1.26%. 1
The muted move matters because Unilever is trying to rebuild confidence after last week’s sell-off over talks with McCormick and worries management could get distracted so soon after spinning off ice cream. Reuters said on March 20 that Unilever was in talks over its foods business after shares had already lost more than 6% over two sessions as speculation spread; both companies said the discussions were ongoing and no deal was certain. 2
A report carried by MarketScreener, citing dpa-AFX Analyser, said Barclays had a fresh “buy” call on Wednesday with a 6,000-pence target. That is about 33% above the 13:28 quote, but the gap between the target and the tape suggested investors want harder proof that a simpler Unilever can also grow faster. 3
Management has been making that case for weeks. In February, CEO Fernando Fernandez said Unilever wanted more “Beauty, Wellbeing and Personal Care” and still expected 2026 sales growth at the low end of its 4%-6% range. Foods made up 26% of 2025 turnover and grew 2.5%, behind Beauty & Wellbeing at 4.3% and Personal Care at 4.7%. 4
Some investors see the industrial logic. Richard Saldanha, global equity portfolio manager at Aviva, said it was “sensible” for Unilever to explore options for food because beauty and personal care offer better category and volume growth. Robert Moskow at TD Cowen said a combination with McCormick had “strong strategic logic” and significant synergy opportunities. 2
Others keep looking at the maths. Reuters said Barclays values the food arm at 28 billion to 31 billion euros, while McCormick’s market capitalization is about $14.5 billion. Analysts have floated a Reverse Morris Trust, a U.S. tax-efficient spin-off-and-merger structure, as one way a transaction could work. 2
The competitive backdrop is messy too. McCormick’s last big food purchase was Reckitt’s North American food business in 2017, and Reuters said Unilever had also weighed talks with Kraft Heinz over parts of its food assets before those discussions ended. That leaves the stock trading on who can pay, and on what terms. 2
There is still a clear downside case. Barclays analyst Warren Ackerman said earlier Fernandez “needs another year under his belt” before taking on a food split. W1M portfolio manager Tineke Frikkee warned that tax costs, lower scale in emerging markets and the risk of another acquisition could all eat into the benefit. 5
Broker views remain scattered. Recent notes collated by MarketScreener showed JP Morgan keeping a buy rating with a 5,700-pence target on Tuesday, while UBS kept a sell at 4,440 pence and Deutsche Bank stayed neutral at 5,150 pence in notes published on Monday. That spread helps explain why Wednesday’s fresh positive call did little to settle the shares. 6
The next hard marker is close. Unilever has told investors it will issue a short pre-close note ahead of its first-quarter trading statement on April 30, while its fourth-quarter 2025 dividend of 40.52 pence is due on April 10. Those are the next scheduled dates for a market that still wants clarity, not just structure. 7
