LONDON, April 6, 2026, 13:20 BST
Unilever’s U.S.-listed shares were at $55.45 in premarket trading by 11:08 UTC on Monday, about 60 cents below the previous close, as the market kept assessing last week’s agreement to combine the company’s food business with McCormick. The deal would leave the British group centered on beauty, personal care and home care. 1
This matters beyond one stock. McCormick’s near-$45 billion bid for Unilever’s food arm ranked among the biggest consumer deals of the first quarter, underscoring how companies are chasing scale as growth slows and shopping habits change. For Unilever, it also draws a line under a food history that runs nearly a century under the Unilever name. 2
Under the terms, Unilever and its shareholders will receive 65% of the combined company and Unilever will get $15.7 billion in cash. The group said the money will help absorb separation and tax costs, cut debt and support about 6 billion euros of buybacks between 2026 and 2029. The structure is a Reverse Morris Trust, a tax-efficient U.S. spin-off merger, and completion is expected by mid-2027. 3
Chief executive Fernando Fernandez has cast the transaction as the clearest sign yet of his plan to simplify the portfolio. He told analysts it was “the right step at the right time” and said the company emerging from the deal would be a 39-billion-euro household and personal care business with more exposure to the United States and India. Reuters reported Unilever has traded on a lower forward earnings multiple than more focused peers such as L’Oréal and Procter & Gamble. 4
Some investors buy that case. David Samra, managing director at Artisan Partners, said the company would “more logically separate” its food and personal care interests and argued the remaining business should command a higher earnings multiple. 5
Still, the market’s first verdict was harsh and some shareholders remain wary. Chris Beckett, a consumer staples analyst at Quilter Cheviot, said “the market, so far, has not reacted well,” pointing to regulatory uncertainty and the difficulty of integrating such a large food group. RBC analysts were blunter, calling the structure “hardly a clean exit” because Unilever investors will still control most of the combined food company. 6
McCormick has pitched the tie-up as a growth bet on flavor rather than sheer volume. Chief executive Brendan Foley said the company would “continue to flavor calories while others compete for them,” arguing that healthier eating and more cooking at home should still support demand for sauces, seasonings and condiments. The argument lands in a market already being reshaped by GLP-1 drugs, a class of weight-loss medicines that curb appetite. 7
But plenty can still go wrong. The tie-up still needs regulatory approvals and is not expected to close until mid-2027, Unilever’s European works council has warned of possible union action if staff protections are inadequate, and S&P Global Ratings revised Unilever’s outlook to negative after the disposal announcement while affirming its A+/A-1 ratings.
