LONDON, March 25, 2026, 13:45 GMT
Unilever shares slipped 0.25% to 4,515 pence as of 13:28, trailing the FTSE 100’s 1.26% climb on Wednesday. The move came despite new broker backing, with investors appearing unconvinced by the group’s ongoing plans to overhaul its food division.
Unilever’s tepid share reaction stands out, as the company is still trying to regain its footing following last week’s dip sparked by merger chatter with McCormick and fresh concerns it might lose focus just after the ice cream spin-off. On March 20, Reuters reported ongoing talks involving Unilever’s foods division—a headline that hit after the stock had already slid more than 6% in two days as rumors swirled. Both firms confirmed discussions were happening, stressing that nothing was locked in yet.
Barclays issued a new “buy” rating on Unilever Wednesday, setting a 6,000-pence price target, according to MarketScreener’s report citing dpa-AFX Analyser. That target sits roughly 33% above the 13:28 quote, but the market isn’t biting yet—the wide spread signals investors still want convincing that a streamlined Unilever can actually accelerate growth. MarketScreener
Management’s been pushing this message for weeks. Back in February, CEO Fernando Fernandez told investors Unilever still wants more “Beauty, Wellbeing and Personal Care” in the mix, and reaffirmed that 2026 sales growth should land at the low end of the 4%-6% target. Foods accounted for 26% of 2025 turnover and managed 2.5% growth—outpaced by Beauty & Wellbeing at 4.3%, and Personal Care at 4.7%. Unilever
There’s some buy-in on the basic strategy. Richard Saldanha, who manages global equities at Aviva, called it “sensible” for Unilever to weigh its food unit’s future—beauty and personal care just bring more category and volume growth. TD Cowen’s Robert Moskow pointed to “strong strategic logic” if McCormick and Unilever paired up, plus major synergy potential. Reuters
Some observers are crunching the numbers. Barclays puts the food business between 28 billion and 31 billion euros. McCormick, by comparison, carries a market cap near $14.5 billion. Analysts have tossed around the idea of a Reverse Morris Trust—a U.S. tax-friendly spin-off-and-merger—as a potential solution for getting a deal done.
Competition’s messy here. Back in 2017, McCormick snapped up Reckitt’s North American food unit—its last major deal. Reuters reported Unilever had mulled a possible sale to Kraft Heinz for pieces of its own food business, but those talks fizzled. Now, it’s all about who’s got the appetite to pay, and what kind of deal structure will fly.
The downside risk remains hard to ignore. Barclays’ Warren Ackerman earlier argued Fernandez isn’t ready for a food split—he “needs another year under his belt.” W1M portfolio manager Tineke Frikkee flagged potential hits from tax costs, weaker scale in emerging markets, and a fresh acquisition risk that could all cut into the upside. Reuters
The broker split hasn’t budged. According to MarketScreener, JP Morgan reiterated its buy call Tuesday, holding to a target of 5,700 pence. UBS, on the other hand, stuck to a sell at 4,440 pence, with Deutsche Bank parked at neutral and 5,150 pence—both notes dropped Monday. So, even with Wednesday’s upbeat rating in the mix, shares hardly found direction.
The calendar is tight. Unilever plans to release a brief pre-close update before its first-quarter trading statement lands on April 30. The company’s fourth-quarter 2025 dividend—40.52 pence—hits on April 10. Investors circling those dates are still hunting for answers, not just a roadmap.
