Home / Business and Economy / Unilever Eyes $16B Deal with Spice Giant McCormick
Unilever Eyes $16B Deal with Spice Giant McCormick
31 Mar
Summary
- Unilever is reportedly in advanced talks to combine its food unit with McCormick.
- The potential deal includes a significant cash component of $16 billion.
- A combination may be structured as a reverse Morris trust for tax benefits.
Unilever is reportedly in the final stages of discussions to merge its food division with the American spice company McCormick. This significant transaction is said to involve a cash component estimated at approximately $16 billion. The proposed deal could potentially be unveiled as early as Tuesday, coinciding with McCormick's scheduled release of its first-quarter financial results.
Sources familiar with the matter indicate that the combination is likely to be structured as a reverse Morris trust. This financial arrangement is designed to offer tax advantages to shareholders. News of these advanced talks led to a notable increase in McCormick's stock value in after-hours trading.
