Unilever nearing food brands merger with McCormick for $15.7bn cash
Business
Unilever is close to merging its food brands (think Knorr and Hellmann's) with McCormick in a potential deal that would deliver $15.7 billion in cash.
The move is set to help Unilever focus more on personal care and beauty, while its food division after its protracted ice cream unit split.
Unilever shareholders would keep majority control if the merger goes through.
Unilever food grew 2.5% last year
Unilever's food division has seen slow growth lately, just 2.5% last year, thanks to changing tastes and tough competition from store brands, but it's still pretty profitable with a strong 22.6% margin.
By teaming up with McCormick, Unilever hopes to find new growth opportunities, with stronger growth coming from emerging markets than from Europe and North America.