A $60 billion food giant is about to emerge! McCormick & Company, Incorporated (MKC.US) is reported to be close to reaching a merger agreement with Unilever PLC Sponsored ADR (UL.US) in the food sector.

According to informed sources, seasoning manufacturer McCormick & Company, Incorporated (MKC.US) is close to reaching a merger agreement with Unilever PLC Sponsored ADR (UL.US) in the food business, to create a new industry giant worth 60 billion US dollars. The deal is expected to be officially announced before the US stock market opens on Tuesday. McCormick & Company, Incorporated is known for its seasonings and sauces, with brands such as Cholula hot sauce and French's mustard; Unilever PLC Sponsored ADR's food brands include Knorr and Hellmann's. Reports state that the board of directors of Unilever PLC Sponsored ADR held a meeting on Monday afternoon to discuss the specific terms of the pending deal. This cash and stock deal may coincide with the release of the latest quarterly financial report of McCormick & Company, Incorporated, but sources caution that the plans are still subject to change. This significant strategic adjustment by Unilever PLC Sponsored ADR follows the trend of consumer goods giants streamlining their global business units. After the completion of the transaction, the UK-based company will primarily focus on the beauty, personal care, and home care business sectors. If the deal is finalized, Unilever PLC Sponsored ADR shareholders are expected to hold about two-thirds of the equity in the new food company. The deal is said to include approximately 16 billion US dollars in cash consideration to meet the needs of all parties involved. The deal is planned to utilize a reverse Morris trust structure to maximize tax benefits. Boosted by this news, McCormick & Company, Incorporated's stock price rose nearly 4% after Monday's US market close, while Unilever PLC Sponsored ADR rose nearly 1%. Prior to this, the stock prices of both companies had fallen by 20% and 8% respectively since the beginning of the year. At a time when the packaged food industry is facing multiple headwinds, industry valuations continue to decline. Investors are concerned that high inflation is squeezing corporate profit margins, while the widespread use of GLP-1 type drugs is also impacting food sales. Analyst Steve Powers of Deutsche Bank Aktiengesellschaft warned in a research report released on Monday, "We believe that the escalating industry pressures and emerging challenges have been accumulating for some time and are gradually undermining the traditional assumptions underpinning the investment logic of U.S. packaged consumer goods." "Some influencing factors may ultimately be only short-term or temporary in nature, or have strong cyclical characteristics, such as macroeconomic and GEO Group Inc political factors. But in our view, issues such as demographic turning points and deep-seated changes in the discourse power structure of the industry chain are more likely to have structural and long-term impacts." Large food companies have always been familiar with mergers and acquisitions, both for large-scale expansion and for streamlining operations. For example, over the past decade, McCormick & Company, Incorporated has consistently pursued a flavor-centric acquisition strategy, gradually transitioning from traditional seasoning business to the high-growth, high-margin sector of seasoning sauces and professional seasoning solutions. One of its most transformative deals took place in 2017, when the company acquired the food division of Reckitt Benckiser for 4.2 billion US dollars, bringing iconic brands such as French's mustard and Franks hot sauce under its umbrella. At the end of 2020, McCormick & Company, Incorporated further consolidated its leading position in the growing hot sauce category by acquiring the Cholula hot sauce brand for 800 million US dollars. In December 2025, Mondelez completed the acquisition of Kelanov for approximately 35.9 billion US dollars, integrating snack brands such as Oreo, Chips, Pop-Tarts with Mondelez's M&M's, Snickers, and other candy brands, to create a global snack giant. In addition, Campbell Soup Company (CPB.US) acquired the high-end pasta sauce brand Rao's parent company Sovos Brands for approximately 2.7 billion US dollars in March 2024. Hormel Foods Corporation (HRL.US), known for its organic cold cuts Applegate, Spam luncheon meat, and Hormel-branded bacon, acquired the nut brand Planters from the struggling Kraft Heinz Company (KHC.US) for 3.35 billion US dollars in 2021. At the same time, investors are increasingly scrutinizing large food conglomerates, believing that their cost structures are bloated and their response to consumer trends is slow. For example, hedge fund Elliott Management has launched a campaign against PepsiCo, Inc. (PEP.US), which has been involved in frequent mergers and acquisitions. General Mills, Inc. (GIS.US) sold its American yogurt business to Lactalis Group for 2.1 billion US dollars in June 2025, focusing on its core cereal and Blue Buffalo pet food businesses.